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Production records in steel sector

After overcoming the difficulties with the supply of imported coal, which caused a drop in production during the last months of 1974 and the first months of 1975, Brazil's three large state-owned steel companies-CSN, Usiminas and Cosipa-broke all production records for steel ingots, in the months of May, June and July

President Geisel meets Fukuda

Japan reaffirms alumina project

The five Japanese aluminum refiners scheduled to take part in the project are Nippon Light Metal, Showa Denko, Sumitomo Chemical, Mitsubishi Chemical Industries and Mitsui Aluminum.

Highs

The Companhia Siderurgica Nacional (CSN) reached its peak in May, when it produced 143 thousand tons, against the 128 thousand tons of its previous peak in September 1974. Usiminas reached its record production high in June, with 157 thousand tons, against 108 thousand-the previous high recorded in June 1974. Cosipa hit its record in July, with 83 thousand tons (against 75 thousand in its last high, in July 1974).

In July, the total production of the three companies was 438 thousand tons, surpassing by 31% their January output, when the total reached 335 thousand tons. From January to July, the total production of the three firms was elevated to 2,225,107 tons, of which 812,083 tons was produced by CSN, 992,889 by Usiminas and 419,135 by Cosipa.

Japan's Deputy Prime Minister Takeo Fukuda has renewed his country's pledge to collaborate in Brazil's US$1.7 billion joint alumina-aluminum production project in the Amazon.

Mr. Fukuda, who was in Brazil at the end of August on an official visit, assured Brazil of Tokyo's intention to cooperate in bringing the plan to final completion no matter what difficulties are encountered.

A group of Japanese private companies planning to take part in the project are expected to establish a pilot firm by early October, with studies of the entire program likely to begin in November.

Brazil wants to build a 3.4 millionkilowatt hydroelectric power plant at Tucuri on the Tocantins River, north of Maraba, to supply electricity for the alumina smelter and the aluminum refinery that will be erected. It is not yet certain whether the Japanese will play a part in this section of the project, however.

Bauxite will be provided for the project from large deposits in the Amazon. As presently conceived, eventual production of the smelter and the refinery will be 640,000 tons of alumina and aluminum

Fisiba Petroquimica S.A. will build a 132-million-pound acrylonitrile plant in Salvador, Bahia, using the Standard Oil Company (Ohio) one-step process.

Ground for the plant will be broken this year and production is scheduled to begin in 1977. The plant will be equally owned by three companies: Petroquisa, the state-owned petrochemical company, which is a subsidiary of Petrobrás; Fisiba S.A., an acrylic fiber company and Rhodia S.A., which produces petrochemicals and fibers in Brazil.

In the past two years, Standard Oil Company has also licensed its acrylonitrile technology to Montedison of Italy, Chemie Linz of Austria and BP Chemicals in Great Britain.

The process uses propylene, ammonia and air in the presence of a catalyst. The catalyst currently used by most of Standard Oil's licensees is the firm's patented "Catalyst 41," which the company says improves process economics by "reducing raw material consumption and increasing total production."

Projections

For the next half of the year the total production of these three companies is estimated at 2,226,000, of which 810 thousand is to be produced by CSN, 924 thousand by Usiminas and 492 thousand by Cosipa.

The overall production of the three plants in 1975 should be raised to 4,081,000 tons, against 3,342,000 in 1974. For 1976, the forecast is that CSN will produce 2,236,000 tons, Usiminas 2,400,000 and Cosipa 2,000,000. This increase should coincide with the inauguration, in October, of the new Usiminas steel mill, which will elevate the capacity of the company by 1,680,000 tons annually, and of the new blast furnace of CSN, which should begin functioning on January 15, 1976.

If this output can be realized, according to the Japanese, it will be the largest single production complex for alumina and aluminum anywhere in the world. Current plans call for the complex to begin operations between 1978 and 1979, with initial annual output set at 320,000 tons of alumina and aluminum.

A Brazilian shoe show will be held in Moscow this month with the objective of consolidating Brazil's entrance into the Soviet shoe market. Shoe exports from Brazil to the Soviet Union began this year with the shipment of 180 thousand pairs to that country.

The Conselho de Não Ferrosos e de Siderurgia (Consider) has approved the granting of official incentives for the following projects: the installation of a steel mill in Santa Catarina with an annual capacity of 500,000 tons; the installation or expansion of mills in the Northeast and Espírito Santo, using the directreduction process and fuel oil; and the installation or expansion of mills, also producing. sponge iron, in the São Paulo and Rio de Janeiro areas, using the directreduction process and, in the first stage, fuel oil and imported natural gas.

The resident of the Banco Nacional de Desenvolvimento Economico (BNDE), has announced the signing of a contract for the purchase of CR$16 million in stock of the Empresa Alagoas MatériasPrimas Farmacêuticas S.A. He pointed out that the move will permit, for the first time, the manufacture of Vitamin C in Brazil. The project will make the absorption of technology in the pharmaceutical sector possible and it will widen the prospects for the creation of a chemical pole in the State of Alagoas, where the Vitamin C will be produced.

The World Bank has approved the concession of two loans, in the total of US$118 million, to Brazil. The money will be invested in the Companhia Siderúrgica Nacional (US$95 million) and in the São Francisco River Valley (US$23 million), in Brazil's Northeast region.

Volvo, of Sweden, is planning to establish a factory in Curitiba, State of Paraná, to manufacture heavy lorries and diesel engines.

The Companhia Siderúrgica Nacional will begin the construction of its second plant in 1978 in Santa Cruz. The production in the first stage will be 3 million tons of flat steel annually.

Indústria de Roupas Renner plans to associate with the German group Manhel. It has been agreed that Manhel will have a 21% capital participation in Renner in exchange for the acquisition of technology necessary for the export of ready-towear clothing on the European market.

In the next five years Brazil will prepare 1,254 technicians in the areas of nuclear engineering, science and technology. An investment of US$3.5 million will be applied for the training of personnel from the Ministry of Mines and Energy.

Representing an investment in the order of CR$500 million, with prospects for the creation of 2 thousand new jobs, Metalúrgica Matarazzo, associated with Continental Can Company, will construct its central headquarters for canning in Barra Mansa, in the State of Rio de Janeiro, to supply the firm's seven factories. The Central Metalúrgica Matarazzo, in Barra Mansa, will be functioning in 1976 and will consume 22 to 25% of the national production of tinplate.

The Novo Hamburgo Commercial and Industrial Association Data Bank announced the figure of 4.4 million pairs of shoes, boots and sandals, shipped to foreign markets in January and February of this year, up 29.1% over the same period in 1974. The value of these sales is US$16.7 million.

Though these figures are more or less equally divided between the two months, there is a slight improvement in the February statistics.

The Brazilian Government has begun the geophysical survey of the 350 kilometer area, between the Tocantin and Araguaia Rivers, in the Northern region of the country. The survey is being conducted to verify indications that this area contains uranium, copper sulfides, zinc, tantalum and cobalt tin, chromium and diamonds.

Sulphur production began in July at the Gabriel Passos refinery at Betim, Minas Gerais. Initial output at the plant, which belongs to the Regap Group, was seven tons per day, and is expected to increase to 12 before the end of the year. Consumption of sulphur, mainly in the form of sulphuric acid, was 740,000 tons in Brazil last year. All but 3.5% of this total was imported. Petrobras produced Brazil's entire sulphur output of 12,000 tons in 1974. A further significant increase in domestic production of sulphur will come in 1977, when Indústria Car

Albarus S.A. Indústria e Comércio, with 30 years experience in the manufacture of power transmission sets, participates actively in the market of Brazilian replacement auto parts, being among the five principal firms in this sector. Presently it exports to the United States, South Africa, Mexico, Venezuela, Colombia, Chile and Argentina. In 1974, its exports passed the US$1 million mark.

The Brazilian Minister of Planning has announced that Brazil will invest approximately US$2 billion in science and technology in the next two years.

West Germany, for the purchase of the last four generators of the Ilha Solteira Energy Plant. Other contracts will be signed with North American banks, for the financing of the final works at the Capivara and Agua Vermelha Plants. To finalize the contracts the President of CESP, Luiz Marcelo Moreira de Azevedo, will go to the United States and West Germany.

An agreement has been signed between Argentina and Brazil for a two-year telephone improvement program to provide direct dialing service between any points in the two countries.

Creusot-Loire, the French steel company, is to buy a 15% stake in Indústria Metalúrgica Nossa Senhora da Aparecide, a 100,000 tons per year special steel company. Creusot-Loire's holding will increase to 20% on an unspecified date.

Of every seven Brazilian Volkswagens sold between January and May, one was exported, according to disclosures made by the firm. For Volkswagen this ratio, which was 8.5:1 at the end of last year, indicates the firm's ability to increase its exports.

From January to May, Volkswagen marketed a total of 203,781 vehicles, registering an increase of 18.8% over the total of 171,539 units sold in the same period last year. On the domestic market, the sales totalled 174,820 passenger vehicles, showing a 12.1% growth rate. Among the vehicles for passengers and mixed-usage, the participation of the VW models was raised to 59.4%, corresponding to 155,649 units, out of a total 261,854 marketed by the whole industry.

of this total, 52.1% (or 81,121 vehicles) belonged to the Sedan models 1300/1500/ 1600. In relation to overall sales of passenger and mixed usage vehicles, the traditional "Beetle" had, from January to May, a participation of 31%. The accumulated sales of the Kombi Van in the period totalled 19,171 units, which gave Volkswagen a 42.6% participation in this part of the market.

Exports from the State of São Paulo grew by 36.4% in the first half of this year, in comparison with the same period last year. The State imports, on the other hand, decreased by 6.9%, compared with

Petrobrás is planning to build an oil refinery in Nigeria in partnership with Japanese and French companies. The refinery will have a capacity of 100-200,000 bpd. Petrobrás is now the 50th largest company in the world, according to the August issue of Fortune.

This information was released by the Secretary of the Treasury of the State of São Paulo, Nelson Gomes Teixeira. He also stated that employment availability in the city of São Paulo revealed an increase of 5.1% in June, which he considered to be a sign of the "beginning of a period of increased labor demand by firms whose sales should gradually rise by the end of the year.”

The Secretary of the Treasury also stated that the domestic stock index showed a growth rate of 12.7% in the first semester, as opposed to a rate of 22.4% in the first half of 1974.

Centrais Eléctricas de São Paulo will sign a US$10 million financing agreement with Kreditanstal fur Wiederaufbau of

Brazilian manufacturers to participate in shows

Brazilian manufacturers will be participating in two upcoming trade shows in New York.

The first exhibit is the National Merchandise Show, which is to be held from September 21 to 24 at the New York Coliseum. Ten Brazilian firms will be displaying various hardware lines at booth numbers 2728 and 2730. Some of the items to be shown are: paint rollers, saws, garden tools, chisels, industrial knives, manual tools, pocket knives, drills, saw blades, band saws and paint brushes.

The second event will be the NAMSB (National Association of Men's Sportswear Buyers) Week, at the Statler Hilton Hotel from October 19 to 22. The Brazilians will show their wares in Booth Skytop 9. The NAMSB Show is the largest men's wear trade show in the world and the Brazilian manufacturers will exhibit footwear, leather and suede apparel, slacks, jeans, sport shirts, swimwear, beachwear, and boy's wear.

Anyone wishing further information on either show should contact: Brazilian Government Trade Bureau, 551 Fifth Avenue, New York, New York 10017.

Men's shirts are among the items to be shown
at the NAMSB show.

SOYBEAN. Comercial e Depositária Glória Ltda., Rua 15 de Novembro 450, Caixa Postal 84, Paranaguá, Parana, Brasil.

TRADING COMPANY OFFERS variety of products. Contact: V. M. Vendas Marketing and Trading S.A., Alameda Nothmann 611, 01216 São Paulo, S.P., Brasil. BRAZILIAN FIRM offers services as buying agent in Brazil. Quasar Administração Planejamento e Representações Ltda., Rua 5 de Julho 98, 04281 São Paulo, S.P., Brasil. ASSISTANCE TO EXECUTIVES IN BRAZIL. Office offers all facilities for people on business trips. (Services by day, week or month; bi-lingual staff, messenger service, interpreters; general guidance to living and working in São Paulo). Great Start Ltda., Caixa Postal 6038, Praça da Republica 177, conjunto 111, São Paulo, S.P., Brasil. Telephone: 34-3245. Cable Greatstart, S.P., S.P., Brasil.

BATHROOM TOWELS. Desina Exportadores e Importadores Ltda., Rua Cinderela no. 25, Caixa Postal 30641, São Paulo, S.P., Brasil. Cable: BUSINESS, São Paulo.

TROPICAL FRUIT. Leão Rodrigues Indústria Comércio e Exp. Ltda., Avenida Padre Almeida Garrett 557, 13.100 Campinas, São Paulo, S.P., Brasil.

CEREALS. Certus Importação Ltda., Avenida Franklin Roosevelt 23, s/lopas 201 D, Rio de Janeiro, Rio de Janeiro, Brasil.

CASHEW NUTS. ORBRACI Ltda., Rua Constança Barbosa 215, Sala 301, Rio de Janeiro, RJ, Brasil.

ARTIFICIAL HONEY. Triangulo Azul S.A., Avenida São João 61-A, Sao Paulo, S.P. Brasil.

DECORATED BATHROOM & KITCHEN TILES. Azulejos Eliane, Maximiliano Gaidzinski S.A., Indústria de Azulejos Eliane, Rua da República 245, Cocal, Urussanga, Santa Catarina, Brasil. Telephone: 2401. Cable: ELIANE.

CANNED FRUIT & VEGETABLES. Aguape S.A. Indústria da Alimentação, Avenida Saldado Filho 641, Caixa Postal 543, Pelotas, Rio Grande do Sul, Brasil. Cable: AGAPE.

BEDROOM FURNITURE. Sena Group International, 103 Park Avenue, Room 1110, New York, New York 10017. BATHROOM FIXTURES, glazed wall tiles, permanent plumbing fixtures for sanitary or hygenic use. Marano S.A., Avenida Conde de Boa Vista 121, Recife, Pernambuco, Brasil. Telephone: 22-2422 or 22-2449. FLOOR 'ILES mosaic cubes. Cerâmica Chiarelli S.A., Rua Domingos Brunelli 180, Caixa Postal 8687, Mogi-Guaçu, São Paulo, Brasil. Attention: Mr. Oscar Chiarelli. Cable: CHIARELLI. Telephone: 6-0404. BATHROOM CABINETS AND FRAMED MIRRORS. Antonio de Paula, Rua Guaranésia 314, apt. 31, 30.000 Belo Horizonte, Minas Gerais, Brasil. IMITATION ANTIQUE CLOCKS, alarm clocks, wall clocks. CONEXPRO Agência de Comércio Exterior Ltda., Caixa Postal 7441, 80.000 Curitiba, Pernambuco, Brasil. BEDS, Indústria e Comércio de Móveis Dircilda Ltda., Rua Regente Feijo 345, Santo André, São Paulo, Brasil. Telephone: 4496499 or 449-6604.

BRAZILIAN GOVERNMENT TRADE BUREAU A Department of the Brazilian Consulate General in New York

551 Fifth Avenue, New York, N. Y. 10017 (212) 682-1055

Information on Brazil can also be obtained from:
Brazilian Embassy, 3006 Massachusetts Ave., N.W., Washington, D. C. 20008

(202) 797-0100
Brazilian Consulate General, 630 Fifth Avenue, New York, N. Y. 10020

(212) 757-3080 Brazilian Consulate, 3400 Montrose Boulevard, Houston, Texas 77006

(713) 526-3941 Brazilian Consulate General, 2 Canal Street, New Orleans, La. 70130

(504) 525-9874 Brazilian Consulate General, 20 N. Wacker Drive, Chicago, III. 60606

(312) 372-2176 Brazilian Consulate General, 5900 Wilshire Blvd., Los Angeles, Calif. 90038

(213) 937-4044 Brazilian Consulate, 100 N. Biscayne Blvd., Miami, Fla. 33132

(305) 377-1734

BATHROOM FIXTURES. Cidamar S.A. Indústria e Comércio, Rua Bom Jesus de Pirapora 3383, Caixa Postal 45, Jundiai, São Paulo, Brasil. Telephone: 2074 or 2075. Telex: 445.3105. Attention: Mr. Miguel May.

HARDWARE VICES, VW HAND TOOLS, shovels, door knobs, power tools. Coebra S.A., Rua D. Jose de Barros, 17, conjunto 25, São Paulo, S.P., Brasil. Telephone: 35-1440. Cable: DOLTRAG. FASTENING TOOLS. Mecanica Walsywa Ltda., Avenida Casa Verde 449/455, Caixa Postal 16.337, 02519 São Paulo, S.P., Brasil.

HARDWARE, locks, doorknobs, mirrors.

MEN'S & WOMEN'S LEATHER JACKETS. EMBRACIL, Empresa Brasileira de Comércio Internacional Ltda., Rua do Riachuelo 42, sala 1005, Rio de Janeiro, Rio de Janeiro, Brasil.

TOOL HANDLES, plywood, plywood doors, railroad cross ties, panelling, floor blocks. Sibisa Sirotsky Birmann S.A., Caixa Postal 2133, 90.000 Curitiba, Paraná, Brasil.

DENIM JACKETS & SLACKS. Grupo Cidrão Indústria e Comércio de Exportação, Avenida Euzébio Matoso 237, São Paulo, S.P., Brasil.

PRODUCTS FOR INDUSTRIAL USE ANHYDROUS ALCOHOL. Intercâmbio, Com. Imp. Exp. Ltda., Caixa Postal 12.875, 01.000 São Paulo, S.P., Brasil. Cable: EN- TERPRISE, São Paulo. HYDROUS ALCOHOL. ORBRACI Ltda., Rua Constança Barbosa 215, Sala 301, Rio de Janeiro, RJ, Brasil.

DOORS & WINDOWS OF SPANISH CEDAR, all types and sizes, also Brazilian lumber; mahogany, andiroba, virola. James R. Fish, Importador, Exportador, Representações, Rua José Clemente 632, Manaus, Amazonas, Brasil.

BRUSHES & BROOMS in general. WeinJõao Dias 1431, Santo Amaro, São Paulo, Brasil. Telephone: 247-0892.

TEXTILES SISAL YARN, ramie fabrics. IOCHPE TRADE Comércio Intercional S.A., Rua São Bento 365, 10° andar, Caixa Postal 3702, 01.000 São Paulo, S.P., Brasil. Telephone: (011) 32.92.69, 35.76.00, 33.70.72. Telex: 391 11 23.173 IOCH-BR.

FURNITURE, folding chairs and tables of jacaranda or guaribu. Servas Centro de Artesanato Mineiro, Palácio das Artes, Avenida Afonso Pena 1.537, Belo Horizonte, Minas Gerais, Brasil.

PHOTOELECTRIC LIGHTING CONTROL for street lights, model D2A 71. Stieletronica, Sociedade Tecnica de Iluminação e Eletronica Ltda., Avenida Itaoca 2086, Rio de Janeiro, Rio de Janeiro, Brasil. Telephone: 260-0232, 260-0272, 260-7473 or 2607765. Cable: LUXCONTROL.

WOODEN DECORATIVE HANDICRAFTS. Fantasias do Nordeste Ltda., Caixa Postal 2515, Recife, Pernambuco, Brasil.

HAIR STRAIGHTENING GEL, shampoo, cream rinse. BRASEX Exportação Importação Ltda., Rua Santo Amaro 197, 20.000 Rio de Janeiro, Rio de Janeiro, Brasil.

LUMBER from the north and south of Brazil. MANASA, Madeira Nacional S.A., Avenida Rudge 752, 01134 São Paulo, S.P., Brasil.

PLYWOOD. Indústria e Comércio de Madeiras Dutra Ltda., Rua do Gasômetro 205, São Paulo, S.P., Brasil.

POPSICKLE STICKS. Henrique Bergel S.A. Ind. de Balas Soberana, Rua Bento Gonçalves 602, Caixa Postal 10, Ijuí, Rio Grande do Sul, Brasil.

WEARABLES LINGERIE. ORBRACI Ltda., Rua Constança Barbosa 215, Sala 301, Rio de Janeiro, Rio de Janeiro, Brasil. LINGERIE, bathing suits for men and women. Poesi Cia. Sayonara de Roupas, Rua Bolívia 39, Rio de Janeiro, Rio de Janeiro, Brasil. MEN'S & WOMEN'S READY-TO-WEAR. Carvalo & Gomes Repres. Ltda., Rua Bernardo Guimarães 1323, Belo Horizonte, Minas Gerais, Brasil. HANDBAGS, clothing. Organização Brasileira Comércio Imp. Exp., OBRACI Ltda., Rua Constança Barbosa 215, Sala 301, Rio de Janeiro, Rio de Janeiro, Brasil. COSTUME JEWELRY, in silver and semiprecious stones, with zodiac signs, charms, birds, etc. Eduardo-joalheiro, Avenida Afonso Pena 748, Sala 1211, Belo Horizonte, Minas Gerais, Brasil.

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Brazil should be self-sufficient in wheat next year, according to a statement by the Minister of Agriculture, Alysson Paulinelli. In view of the importance of this commodity for internal supply and its influence on the country's balance of trade, due to the necessity for importing, self-sufficiency in wheat production has a high priority for the Ministry of Agriculture. In 1974 the country produced 2.8 million tons for an estimated consumption of about 4 million tons, according to official sources. Despite recent frosts, it is expected that output in 1975 should reach 3 million tons, while the demand for the commodity will be to the order of 4.2 million tons. Before the frost, estimates of the Brazilian wheat harvest had been for 3.6 million tons. The Brazilian wheat harvest has been increasing in recent years as the result of government incentives for its cultivation.

In the first seven months of 1975, Brazilian manufacturers of machines and equipment sold approximately US$350 million worth of merchandise, with the assistance of financing granted by the Special Agency for Industrial Financing (FINAME), of the National Bank for Economic Development (BNDE).

The Eximbank has granted a six-year loan of US$3.3 million, at 81/2%, to Confab Industrial, of São Paulo, to finance purchases from the United States of machinery and equipment, for a steel tank manufacture and a tube mill. A loan for an equivalent amount has been granted by a US private bank.

The new underwater cable which will link Brazil and the United States will be ready in 1977 and will cost US$140 million. The charting of the course of the cable, which will go from Fortaleza to the Caribbean, has already been finished.

J. Torquato Comércio e Indústria, of Brazil (60%), Cía Asturiana de Zinc, of Spain (18%), Usimeta, of Belgium (185), and the British Amalgamated Metal Corporation (4%), have set up a new company, Paraibuna de Metais, to build a refinery at Juiz de Fora, Minas Gerais, with an annual production capacity of 30,000 tons of zinc after 1979.

One contract has been awarded jointly to the five Brazilian-Paraguayan consortia which put in individual bids to dig the canal that will divert the Paraná River while the dam for the Itaipu hydroelectric project is being built.

This decision, announced in August by Itaipu Binacional, the company formed to manage the project, will lessen the need to import earth-moving equipment and other capital goods during the first stage of the project.

Work on the canal will begin almost immediately, with the first two of fourteen generators scheduled to be installed and working in 1983.

The future metropolitan airport in São Paulo will cost about US$500 million. Construction should begin in the middle of next year and the airport is expected to be completed in five years, according to a statement by the São Paulo State Department of Transportation. The site of the airport, however, was not disclosed. The Department of Transportation studies embrace an overall plan for airport policy in the State of São Paulo.

An additional 10 million coffee trees will be planted in the state of Rio de Janeiro, which was Brazil's main coffee planting area in the last century.

This move, following July's disastrous frosts in the major coffee-producing states of Paraná, São Paulo and Minas Gerais, is in line with the Government's policy of replanting coffee plantations further north, outside the frost area.

To help coffee growers recover losses, the Government has allotted US$850 million for loans at low rates.

According to the president of Petrobras, Araken de Oliveira, the oil well now being drilled on the Campos shelf will allow a daily yield of 200,000 barrels of petroleum, while the reserves are estimated at 330 million cubic meters. This potential, however, is surpassed by the oilfields discovered on the shelf off the State of Rio Grande do Norte, especially the Ubarana oil field, and Petrobras will thus concentrate a greater amount of equipment at the latter site.

Regarding prospecting in the Amazon region, he said that Petrobras has re

The hotel chain, Zucconi, of Florence, Italy, has purchased an island Angra dos Reis. The group is planning to build a hotel on the island which will provide motorboats for guests. The hotel will consist of 100 suites.

The Instituto Brasileiro de Geografia e Estatística (IBGE) has forecast the pop

EMBRAER, Brazil's national aircraft company, has announced a US$5 million

(Continued on Page 8) The Brazilian Government Trade Bureau offices in New York have had a major face-lift. On September 25 a completely remodeled Trade Bureau was inaugurated in the presence of the Brazilian Minister of Foreign Affairs, Ambassador Antonio F. Azeredo da Silveira, several Brazilian and North American officials and about 300 other invited guests were on hand for opening festivities.

New look for BGTB offices in New York

The Brazilian Government Trade Bureau, under the directorship of the Ministry of Foreign Affairs (Itamaraty), functions on four levels: (1) to supply trade information to American importers and Brazilian exporters; (2) Direct Promotions, consisting of the participation in major expositions to promote Brazilian products, and the issuing of tourist information; (3) market studies; (4) assistence to Brazilian businessmen in New York and to Americans interested in importing from or investing in Brazil.

The remodeling of the New York offices to better serve in the activities of trade promotion is a pilot project, which will be extended into other centers of interest in the United States, like the cities

of Dallas, Atlanta and Chicago.

The emphasis on reaching US markets is understandable when one considers the important part that the United States plays in the Brazilian trade picture. Overall trade with the United States represented US$4 billion 800 million in 1974, of which US$1 billion 700 million were Brazilian exports.

The United States is also the largest single investor in Brazil, with US$2 billion having been invested and reinvested by the end of 1974, distributed among an ample variety of economic activities.

The Brazilian Government continues to encourage a policy of increasing and diversifying of exports of manufactures and semi-manufactures. In the distribution of Brazilian exports, the United States, until 1967, was in the first position as major buyer of Brazilian goods. This position was taken over by the European Economic Community (EEC) after 1968.

The importance of Brazilian exports to the United States has great prospects for growth, since the Brazilian participation in the US import schedule remained at 1.7% from 1970 to 1974.

The composition of the Brazilian export schedule for the United States has undergone considerable modifications in the past few years. The participation in the category of "basic products" has tended to decrease, passing from 67% in 1971 to 41% in the first half of 1974. On the other hand, though, in the categories of "semi-manufactures" and "manufactures" participation has increased from 3.4% and 25.8% in 1971 to 14.1% to 43.4% in the first half of 1974.

All of these facts point to the necessity of increasing the activities of trade promotion in the United States. For this reason the Brazilian Government Trade Bureau in New York has expanded and reorganized its participation in this sector. The New York operations reflect the ever-increasing interest on the part of the Brazilian government to constantly improve its activities in the United States.

The Brazilian Government Trade Bureau is located at 551 Fifth Avenue, Suite 210, New York, New York 10023. (Telephone: 212-682-1055). There are office hours daily from 10:00 a.m. to 5:30 p.m.

Hilton plans expansion in Brazil

To increase lines in the Northeast

Mr. Jose A. Menendez, Area Vice President Latin America for Hilton International and Prince Roman Sangusko recently announced that Hilton do Brasil, a subsidiary of Hilton International and Gerbur S.A., have signed a management contract under which Hilton will manage a new 250 room hotel, owned by Gerbur, located on Rua Martins Fontes in São Paulo. The hotel is already in construction under the management of Sisal S.A. Completion is scheduled for the spring of 1976. The hotel will offer an intimate club-like atmosphere and contain full facilities, including a grill room, bar, banquet and meeting rooms, garage, swimming pool and health club. Brasilton São Paulo is Hilton International's second hotel in São Paulo.

der construction by early 1976 and be well on its way to the achievement of the ambitious goals set forth for the company two years ago. This program for Brazil represents Hilton's single largest effort in its global operations because of its faith in the tremendous development of the Brazilian economy. It will not only contribute to substantial additional employment throughout the country, but will represent an important contribution to Brazil's tourist capability, including the development of professional skills in this important sector.

Exports are up, imports the same

Brasilton

To be known as Brasilton São Paulo, it will be the initial hotel completed under a program first announced in April 1973, by Hilton International and Sisal S.A. Under this program the two companies formed a new organization, known as Brasilton Hoteis e Turismo S.A. The objective of this company, with the cooperation of EMBRATUR, through its fiscal incentives, is the development of 30 to 50 first class hotels across the country.

Brasilton São Paulo will be the flagship of this unique new group of hotels, but development and planning work has also been proceeding on a variety of other Brasilton projects. Next month the company expects to start construction of its first prototype low-rise Brasilton, a 150 room hotel in the city of Contagem, the important industrial suburb of Belo Horizonte. Closely following will be a second 150 room low-rise hotel on Via Dutra highway, in the rapidly growing industrial center of Taubate, between Rio de Janeiro and São Paulo, Brasilton owns a beach front site in Bahia, and the company has acquired a prime location for a 250 to 300 room high-rise hotel in the city center of Belem, Pará. Planning work is almost complete for this Brasilton. In addition a bid has been submitted to the city of Belo Horizonte for a key site, and a favorable decision is anticipated shortly.

Brazilian exports reached, from January to August of this year, a little less than US$6 billion, representing an increase of close to 27% in relation to the same period in 1974. This information comes from preliminary data disclosed in São Paulo recently by the Director of the Foreign Trade Department of the Banco do Brasil (CACEX), Benedito Fonseca Moreira. He also stated that imports were maintained at the same level as last year – close to US$8 billion.

Benedito Moreira said that "despite the present situation of international trade, there exists a market."

In his view, what is needed is "a selling ability, the establishment of an aggressive marketing policy and the informing of the business community that the reduction of trade deficits and payments also depends on their performance and not just on government measures.'

According to the director of CACEX, reducing the trade deficit is simple – imports must be reduced. “However – he emphasized – it is not an interesting option for the country if it wants to maintain high rates of economic growth. It is necessary that the 20 thousand firms which operate in foreign trade understand the problem and reduce their imports voluntarily and rationally, as well as increase their export levels, principally in value terms."

He stated that all Brazil's foreign trade policy is geared towards the increase of exports and not towards the restriction of imports. But – he pointed out - some measures of a restrictive character had to be taken in response to some restrictions placed on the trade flow on the part of industrialized countries.

The Banco do Nordeste has recently approved, in Fortaleza, financing in the amount of CR$520 million for the telecommunications companies of the States of Ceará (CR$200 million), Paraíba (CR$50 million), Bahia (CR$100 million), Alagoas (CR$70 million) and Minas Gerais. The funds will be distributed to the States through Telebrás and be used for the expansion and modernization of existent telecommunications systems. Benefits

Approximately 330 Northeastern municipalities will benefit, receiving new telephone lines or modernizing the already-existent infrastructure. Dozens of cities will be integrated into the National Communications System by DDD (Direct Long Distance Dialing). The term of the financing will be ten years, with a three-year grace period.

The Telecommunications company of Paraíba will invest CR$50 million to raise the number of telephone lines from 9,429 to 43,100 in the State, in a first-stage effort. It is hoped that, by 1990, Paraíba will have 137,150 telephone lines. Fortyfour cities in the State will have access to the DDD system.

In Alagoas, a special project phase will go to the restructuring of the telephone system of 94 municipalities and the installation of new terminals and the modernization of existent services. By 1979, Telecomunicações de Alagoas S. A. expects to increase its lines from 10,310 to 35,116. In Ceará, 84 municipalities will receive local and interurban telephone service.

Bahia

The firm, Telecomunicações da Bahia S.A., is going to install modern urban telecommunications systems in 90 cities. There will be 116,000 telephone lines in Salvador and 74,000 in the interior of the State – 190,000 new lines in all.

In Minas Gerais, the funds of the Banco do Nordeste will benefit the Northern Region of the State, within the area under SUDENE jurisdiction.

The agreement will be handled by the Montes Claros agency of the Banco do Nordeste. With this money, Telecomunicações de Minas Gerais S.A. intends to double the number of existent telephones in the region and integrate various cities into the National Communications Program.

Other Projects

Other projects under development include a 250-300 room Tennis Club Hotel in Brasília. Assuming that current plans materialize, the company should have at least six Brasiltons with 1200 rooms un

Page 4

Hydroelectric power plant gets loan

The project will consist of the following works: ..... Construction of a main rock-filled dam with a sloped impervious core and three auxiliary compacted-earth dams. ..... Construction of a concrete structure spillway and four 220-meter diversion tunnels. ..... Construction of the Salto Santiago Hydroelectric Plant, comprising an intake, intake canal, penstocks, semi-exterior powerhouse and spillway and the installation of four 333,000-Kilowatt turbogenerator groups with allowance made for the installation of two additional groups.

On completion in 1980, the project will supply electric power to the southern and southeastern/west-central regions of Brazil, through a transmission system to be built under a separate program, until the Itaipú hydroelectric plant, scheduled for construction on the Paraná River, enters into operation in 1983. Thereafter, the Salto Santiago production will be allocated to meet electric power demand in southern Brazil.

To sustain its rapid industrialization and high economic growth rate of recent years, as well as to relieve its heavy dependency on imported petroleum, Brazil is speeding up the construction of hydroelectric power plants, including the Itaipú complex with a projected installed capacity of 10.7 million kilowatts; the Salto Santiago Plant and the country's first nuclear power plant, being built near Angra dos Reis, in the southeast region, with an installed capacity of 625,000 kilowatts.

In 1962/74 the installed electric power capacity in Brazil tripled from 5,729,000 kilowatts in 1962 to 17,199,000 kilowatts in 1974. Of this amount, 1,636,000 kilowatts of installed capacity (approximately 10%) is located in the southern region where the Salto Santiago plant will be built.

The Bank had approved a previous US$21.3 million loan in 1969 to help ELETROSUL finance construction of the 220,000-kilowatt Passo Fundo hydroelectric power station in the Uruguay River basin.

Brahma Chopp, the largest selling beer in Brazil, was recently introduced into the New York and New England areas, supported by an advertising campaign on radio and in newspapers, aimed primarily at the large Brazilian and Portuguese population in these markets.

Edith Friedland, president of EFCO Importers, the firm responsible for distribution of Brahma in the United States, reports brisk initial sales and distribution in New York City, Newark and in the New Bedford area of Massachusetts.

Distributed in northern New Jersey by Hoffman Distributors, Carlstadt, New Jersey, and in New York City by Home Siphon Distributing Co., Brahma is now being served in most of the popular Brazilian restaurants and night spots in the area. Delicatessens specializing in imported beers are now featuring Brahma Chopp as a popular addition to their beverage selection. New England distribution of Brahma is being handled by United Liquors, Fairhaven, Massachusetts.

For more information about Brahma Chopp one should call: 215-886-6910, or write EFCO Importers, P.O. Box 741, Jenkintown, Pennsylvania 19046.

REPUBLICATION Bonafide news media may republish any or all of the material in this Brazilian Bulletin, though a creditline is requested.

Inspecticing, the program is expected Move is planned for paper industry

The Banco Central do Brasil (BCB), through its Rural Credit Department, is helping raise national agricultural and livestock production through the execution of a global program of supervised credit to farmers and cattle raisers throughout the country.

The total cost of the program is estimated at US$80 million, of which an Inter-American Bank loan will cover 50%, the BCB 40% and financial agents

10%. Specifically to:

Increase directly the productivity and income of approximately 6800 medium and small-scale rural producers and of some 14,000 additional producers who will benefit by the reinvestment of loan recoveries. ... Strengthen the activities of existing rural cooperatives and encourage the formation of new cooperatives, thereby benefitting approximately 180,000 cooperative members of whom more than 70% will be medium and small-scale producers.

Coordinate the provision of rural extension services at the producer level, stimulate the use of fertilizers and modern production techniques and help create new employment opportunities in the rural sector.

Brazil's new economic policy awards high priority to the modernization of the agriculture and livestock sector and particularly the development of small and medium-scale farming upon which 26 million persons depend for their livelihood. Of 4.4 million farm units classified

In accordance with the process of industrial decentralization, the installation of new factories for paper and cellulose, in Brazil, should gradually be transferred from the South to the Northeast. The major incentive for such a move is to take advantage of the wood potential of the Amazon and the cane bagasse in the sugar-producing regions, principally for export production. This program aims at reaching an exportable surplus of 20 million tons, by increasing quantities, after 1983 and making overall investments in the order of US$17 billion.

This disclosure was made recently by the Council of Industrial Development at the opening of the First Group of Technical Lectures on the Paper and Cellulose Industry.

The National Paper and Cellulose Program, which forecasts a production by 1980 of 3 million 680 thousand tons of paper, 4 million 200 thousand tons of cellulose (half for the foreign market) and 650 thousand tons of mechanicallyground wood pulp, will need fixed investments estimated at US$2.760 billion.

Decentralization

The development of the Brazilian paper and cellulose industry has been quite rapid, passing from 278 thousand tons in 1962, to 972 thousand tons in 1973, and close to 1 million 200 thousand tons last year. In 1973, 95% of the national production was concentrated in four states (São Paulo, Paraná, Santa Catarina and Rio Grande do Sul). A move to the regions of the North and Northeast is viable, considering the raw material availability, not only of the wood and the cane bagasse, but also of the sisal and other tropical fibers.

The Radam Project, in a survey of natural resources of the region of Tapajós (an area of 293,750 square kilometers, including zones of Pará, Amazonas and Mato Grosso), verified the existence of a large and valuable wood potential.

The implementation of a special export program will be an important factor in the interiorization of the nation's development, due to the scale of projects and the natural movement to areas removed from urban centers.

(Continued from Page 2) sale of 15 aircraft to Uruguay — 10 agricultural Ipanemas and 5 transport Bandeirantes. The Ipanema, a single-prop crop duster, will be used in Uruguay's agricultural modernization program. The Bandeirante, a twin-engine turbo-prop carrying 15 passengers or cargo, will be used to link remote cities of the interior with the more developed regions of Uruguay. All aircraft will be delivered by November 1.

J. M. Huber Corporation has formed a new company in Brazil with Construtora Mendes Junior S.A., to explore large clay deposits in the state of Pará.

Plans call for the new company, called Kaolin do Pará, to construct a processing plant with initial capacity of 280,000 tons per year of a full range of coating and filler clay similar to clay now produced by Huber for the paper industry in the United States.

Production is earmarked for European, Japanese and Brazilian markets. The investment required for the project is estimated at US$25 million.

Huber says the clay mine and plant will "utilize the latest technology to take full advantage of the outstanding characteristics of the company's kaolin clay deposits in Brazil.”

Mendes is one of the largest Brazilian construction companies and is primarily engaged in the construction of highways, railways, bridges and hydroelectric power plants.

Huber is one of the largest producers of kaolin clay in the United States, with an annual capacity of over 1 million tons.

The First Brazilian Petrochemical Congress is to take place between November 8th and 12th at the Hotel Nacional, in Rio de Janeiro. Under the auspices of the Brazilian Institute of Petroleum, this Congress will be assembling all those interested in the petrochemical industry and it will allow for the interchange of ideas and experiences among those working in this sector.

The resources appropriated for the Polamazônia Program in the 1975/79 period will be doubled, climbing to CR$8 billion, in accordance with planning established by the Banco da Amazônia. The initial plan called for CR$4 billion to be spent on projects in the region, the money originating from federal agencies and the private sector. The remaining CR$4 billion will be financed by the Banco da Amazonia.

The Banco da Amazônia intends to support the goals of Poloamazônia by means of two plans of financing: one for agriculture and cattle raising and the other for industry and infrastructure. The resources in the rural credit sector will reach CR$2.5 billion and those in industrial and infrastructural credit will be CR$1.5 billion.

A contract was signed recently in Bangkok, Thailand, with the Brazilian firm SANBRA (Sociedade Algodoeira do Nordeste Brasileira S.A.) for the installation of a vegetable oil refinery. This is a case where Brazilian technology and knowhow is being put toward export credit, which could be applied to many other tropical countries. Brazil is becoming a reliable and creditworthy source of modern process development in the important field of foodstuffs for the growing populations of the world.

This edible oil refining installation will be not only the largest in Thailand, but the biggest in South East Asia, with an annual capacity to handle 30,000 tons of soybean, 20,000 tons of rice, 15,000 tons of cottonseed and 15,000 tons of kapok, from which, in various seasons, oil will be extracted and refined. A packing plant for retail outlets is also part of the project.

Work on the Hydroelectric Plant of Itaúba, in the state of Rio Grande do Sul, is moving at a fast pace. The plant, on the banks of the Jacuí River, is being built by Cia. Estadual de Energia Elétrica. Itaúba should begin operations in 1978, increasing by 500 thousand KV the installed capacity of the State.

Polibrasil S.A. Indústria e Comércio, the firm resulting from the merger of Petroquisa Shell Brasil and the Grupo Coimbra Bueno, will begin construction on its petrochemical complex. The investment of Polibrasil in the project is about US$90 million and when industrial operations begin it will produce 50 thousand tons annually of polypropylene, utilizing propylene supplied by Petroquímica União. The construction work is being done by Construtora Dumez and project management and coordination is being handled by Montreal Engenharia S.A., using know-how provided by Shell International.

The Banco do Brasil has inaugurated a new branch office in Los Angeles. Operations began with a US$35 million credit extended to the Superintendencia Nacional da Marinha Mercante (National Superintendency of the Merchant Marine). The credit agreement was signed at opening festivities last month by the president of the bank, Angelo Calmon de Sá.

The Rio Othon Palace Hotel is ready this month, in time for the Asta Convention. The Hotel is located on Copacabana Beach in Rio de Janeiro. There are 609 rooms and suites, as well as a Convention Hall for 700 delegates and various restaurants and bars. There is also a roof-top swimming pool and all the trimmings. Pontual Arquitetos was responsible for the architectural project.

The president of Petrobrás signed in September, in Paris, a loan agreement with a consortium of European banks,

aded by Credit Lyonnais. The loan will be paid in eight years and six

Nor-Shipping good for Brazilian interests

The Brazilian shipping companies which participated in Nor-Shipping '75 last May in Oslo, Norway, signed contracts for sales totalling US$179.8 million. This figure reaches US$193 million, when the transactions of the Companhia de Comércio e Navegação are considered.

Negotiations involved the order of 25 vessels, to be constructed in Brazilian shipyards for English, German, Greek, Norwegian and Danish buyers.

Besides the immediate results of the negotiations, Brazilian participation in that fair opened doors for future business. The sales effected and the negotiations scheduled for the future were so impressive that the Oslo press noted: "Brazil is participating, this year, for the second time in the Nor-Shipping Fair and

Contacts and agreements with Norwegian authorities and firms interested in trade enabled the extension of business in the varied sectors of maritime, air, rail and road transport, as well as the disclosure of the principals and goals of the government plan for economic development in general and the Brazilian maritime transport policy in particular.

The various meetings with Norwegian firms resulted in a visit by them to Brazil, to examine the possibility of supplying equipment for the Brazilian Merchant Marine and the naval industry. They were also interested in associating with Brazilian shipping companies for a transfer of Norwegian technology. Thune Eureka A/A, belonging to the Kvaerner

group, and associated with Santa Matilda, became interested in the production of scuttles and ship equipment, and saw a possibility for the manufacture of electric locomotives in Brazil. Another firm – Asea, of Sweden - showed similar interests and made contacts to produce electric locomotives under a licensing agreement.

In meetings with shipowners and authorities, the Minister of Transportation confirmed that the increase of Brazilian production and of Brazilian foreign trade requires the expansion of Brazil's merchant fleet. He further believes that this growth will benefit other nations, including Norway, which will take advantage of the large volume of transported cargo.

it is probably the participant which, up Brazilian Ships Ordered At Nor-Shipping

to , contract."

The Brazilian delegation, headed by the Minister of Transportation consisted of representatives of the National Superintendency of the Merchant Marine, the Department of Foreign Trade (CACEX) of the Banco do Brasil, Esabrás, the Banco de Desenvolvimento, Hempel Tintal Marítimas and the shipping companies of CCN, So/Ebin, Ishibrás, Docenave and Frota Oceânica.

The State of Rio Grande do Sul plans to export beef to the Middle East before the end of this year (the initial transaction would correspond to 60 thousand head) in a deal made through Braspetro.

The president of the Federation of Meat Cooperatives has stated that the transaction will be made within the system presently adopted by the government (exchange of foodstuffs for petroleum), but specific terms are pending further contact with the Arab importers.

The new road for industrial expansion in Brazil leads to the South of Minas Gerais. This was the central theme of a seminar on the decentralization of Brazilian industry, which the State of Minas Gerais held recently in Poços de Caldas. The governor of the State spoke at one session before over 150 businessmen, most of them from São Paulo, on the economic potential of his state. He pointed to the advantages of a viable infrastructure, fiscal incentives and geographical location, which the State offers to parties interested in investing there.

Page 5

AUTO PARTS GEAR BOXES. Ciexport, Rua São Luis 182, loja 15, São Paulo, S.P., Brasil. Attention: Mr. William Danielle. Telephone: 256-0505 or 257-2359. TRUCK PARTS. Cobrasma S.A., Rua da Estação 523, Osasco, São Paulo, S.P., Brasil. Cable: COBRASMA. Telex: 021682. BUS, TRUCK, AUTO PARTS. Fábrica Nacional de Motores S.A., (Alfa Romeo Group), Avenida Presidente Vargas 542, Rio de Janeiro, Rio de Janeiro, Brasil. Telephone: 243-1139. AUTO PARTS. Armações de Aço Probel S.A., Rua do Sorocabanos 680, Caixa Postal 30.229, codigo postal 01.000, São Paulo, S.P., Brasil. Attention: Mr. Jean Kroany. Telephone: 63-3121. SHOCK ABSORBERS. Indústria e Comércio Orma Ltda., Rua Anhaia 762, São Paulo, S.P., Brasil. Telephone: 51-6771 or 52-2288. AUTOMOTIVE PARTS FOR LIGHT TRUCKS, pick-up trucks, vans and motor vehicles in general for freight or passenger transport. Toyota do Brasil S.A. Ind. e Com., Estrada Piraporinha, km. 23, São Bernardo do Campo, São Paulo, Brasil. Telephone: 43-3325. Cable: TOYOMOCO. Telex: 023841.

WINE & GRAPE JUICE. Cia. Monaco Vinhedos Ind. Com. Imp. Exp., Rua Saldanha Marinho 783, Bento Gonçalves, Rio Grande do Sul, Brasil, TOMATO PASTE, tropical fruit juices, cashew nuts, sardines, soya meal. Intersales Exportação Ltda., Caixa Postal 16.035, Largo do Machado 29, grupo 501, 20.000 Rio de Janeiro, RJ, Brasil. ASSORTED CANDY. Bela Vista S.A., Rua Canindé 948, 03.033 São Paulo, S.P., Brasil. Telephone: 93-5490. GUARANA EXTRACT, banana sauce, citric oils. Indústrias Reunidas Jaraguá S.A., Caixa Postal D-15, 89250 Jaraguá do Sul, Rio Grande do Sul, Brasil, CASHEW NUTS. Bosschart & Cia. Ltda., Rua do Bom Jesus 172, sala 401, Caixa Postal 1245, Recife, Pernambuco, Brasil. DRIED SEAWEED. Interquim, Comercial Química Ltda., Caixa Postal 1616, São Paulo, S.P., Brasil,

EDIBLES CONCENTRATED GRAPE JUICE. BANTRADE Cia. de Comércio Internacional, Caixa Postal 2562, Porto Alegre, Rio Grande do Sun, Brasil. LIVER PASTE, chicken paste, canned mortadella, canned beef, canned ham, cashew nuts (plain and roasted), cocoa beans, hearts of palm, canned sardines, concentrated grape juice, pepper (white and black). Brasil Export International, Avenida Nilo Peçanha 50, Rio de Janeiro, RJ, Brasil. TROPICAL FRUIT JUICES, honey, hearts of palm, cashew oil, fruit pastes and jellies. MACROMAR Com. e Reprentações Ltda., Caixa Postal 6125, 01033 São Paulo, S.P., Brasil. CASHEW NUTS. Grupo Cidrão Indústria e Comércio de Exportação, Avenida Euzébio Matoso 237, São Paulo, S.P., Brasil. HEARTS OF PALM. Brascan International Exportação e Importação S.A., Caixa Postal 848, Rio de Janeiro, RJ, Brasil. TROPICAL FRUIT. Santa Helena Agrícola Ltda., Avenida Francisco Glicério 329, Conjunto 23, 13.100 Campinas, São Paulo, Brasil. CANNED SARDINES. Inds. Alimentícias Beira Alta Ltda., Avenida Brasil 13.000, Caixa Postal 21064, Rio de Janeiro, RJ Brasil. Attention: Mr. Mario Sergio de Araújo. Cable: HABILTADO. Telephone: 260-2332. SOLUBLE COFFEE. Dominium S.A. Indústria e Comércio, Rua Direita 250, 22° andar, São Paulo, S.P., Brasil.

HARDWARE TAPPING SCREWS. Industrias Micheletto S.A., Caixa Postal 15, 90.000 Porto Alegre, Rio Grande do Sul, Brasil. CARPENTER PLANES. Inds. Emanoel Rocco S.A., Rua Raul Machado 134, Caixa Postal 152, Limeira, Sao Paulo, Brasil. .... LATEX WALL PAINTS. Glausurit do Bra- sil S.A., Caixa Postal 2133, 90.000 Postal 16.337, 02519 Sao Paulo, S.P., Brasil.

WEARABLES JEWELRY. Decio Gouvea Lima, Rua Xavier Toledo 71, São Paulo, S.P., Brasil, SILVER JEWELRY and semi-precious stones. Irmãos Macedo Ltda., Rua Rio de Janeiro 300, sala 1100, Belo Horizonte, Minas Gerais, Brasil. FOOTWEAR for men. Calçados Sandalo S.A., Avenida Brasil, Franca, São Paulo, Brasil.

BUILDING MATERIALS WOOD. Santa Paula Assessoria e Planejamento, Rua Oito 247, Goiâna, Goiás, Brasil. Telephone: 6-3503 or 2-4704. Attention: Mr. Ivomar de Pádua. WELDING STEEL WIRES. Siderúrgica Fiel Korf S.A., Caixa Postal 196, Via Dutra, km. 326, 12.200 São Jose dos Campos, São Paulo, Brasil. PLASTIC & VINYL GRADE MOULDINGS. Amazonex Industrial Exportadora Ltda., Caixa Postal 138, 66.000 Belém, Pará, Brasil. Attention: Mr. Ovidio Casparetto. LUMBER from the north and south of Brazil. MANASA, Madeira Nacional S.A., Avenida Rudge 752, 01134 São Paulo, S.P., Brasil. PLYWOOD. Indústria e Comércio de Madeiras Dutra Ltda., Rua do Gasômetro 205, São Paulo, S.P., Brasil. LUMBER, veneers, moldings. Companhia de Comércio Exterior, Avenida Rebouças 1373, 0541 São Paulo, S.P., Brasil. FLOOR PANELS, floor blocks, wall panels. Madeira del Pai S.A., Caixa Postal 2886, 80.000 Curitiba, Paraná, Brasil. LUMBER from the Amazon region. Norte Madeiras Importação e Exportação Ltda., Rua Arcipreste Manoel Teodoro 811, Belém, Pará, Brasil, LUMBER. Overseas Trading Comércio Exterior S.A., Rua Libero Badaró 425, andar 29, conjuncto 292, São Paulo, S.P., Brasil. CEMENT, iron beams. COBRASPI Ltda., Caixa Postal 22138, Avenida Paulista 2073, andar 7, conjunto 718, São Paulo, S.P., Brasil.

BRAZILIAN GOVERNMENT TRADE BUREAU A Department of the Brazilian Consulate General in New York

551 Fifth Avenue, New York, N. Y. 10017 (212) 682-1055

Information on Brazil can also be obtained from:
Brazilian Embassy, 3006 Massachusetts Ave., N.W., Washington, D. C. 20008

(202) 797-0100
Brazilian Consulate General, 630 Fifth Avenue, New York, N. Y. 10020

(212) 757-3080 Brazilian Consulate, 3400 Montrose Boulevard, Houston, Texas 77006

(713) 526-3941 Brazilian Consulate General, 2 Canal Street, New Orleans, La. 70130

(504) 525-9874 Brazilian Consulate General, 20 N. Wacker Drive, Chicago, III. 60606

(312) 372-2176 Brazilian Consulate General, 5900 Wilshire Blvd., Los Angeles, Calif. 90038

(213) 937-4044 Brazilian Consulate, 100 N. Biscayne Blvd., Miami, Fla. 33132

(305) 377-1734

TOOL MACHINES, also agricultural implements. Flecha de Lima Comércio Exterior Ltda., Rua do Seminario 199, andar 10, São Paulo, S.P., Brasil.

FURNITURE. Santa Paula Assessoria Planejamento, Rua Oito 247, Goiâna, Goiás, Brasil. Attention: Mr. Ivomar de Paduá. Telephone: 6-3503 or 2-4704. BARK CLOTH, with handpainted Amazon Indian designs. Richard Melnyk, Caixa Postal 86, Manaus, Amazonas, 69.000 Brasil. CERAMIC TILES. Guainco Pisos Esmaltados Ltda., Rua Gastão Vidigal 15, Caixa Postal 110, 13.840, Mogi Guaçu, São Paulo, Brasil. Telephone: 6-0402. BATHROOM FIXTURES, glazed wall tiles, permanent plumbing fixtures for sanitary use. Marano S.A., Avenida Conde de Boa Vista 121, Recife, Pernambuco, Brasil. Telephone: 22-2422 or 22-2449. WOODEN DECORATIVE HANDICRAFTS. Fantasias do Nordeste Ltda., Caixa Postal 2515, Recife, Pernambuco, Brasil. RUGS. Arno Koppe, Rua Coronel Just. 1.607, 96.800 Santa Cruz do Sul, Rio Grande do Sul, Brasil. HAMMOCKS. Adolfo Rocha & Cia., Avenida XV de novembro, n° 50, conjunto 809/11, Rio de Janeiro, Rio de Janeiro, Brasil.

DENIM SLACKS & SUITS. Vilela Vendas Ltda., Avenida Euzébio Matoso 374, São Paulo, S.P., Brasil. WEARING APPAREL for men. Cia. Orly Industrial, Caixa Postal 192, Rua Passos 249, São Paulo, S.P., Brasil. Cable: ORLYH. Telephone: 292-3515 or 93-6591. BIKINIS, also bras. Confecções Francesas Reunida S.A., Alameda Nothmann 708, São Paulo, S.P., Brasil. Attention: Mrs. Giulia Galante. Telephone: 52-6439 or 52-6416. FULL-FASHIONED KNITWEAR in acrylic, polyester and wool. Antonio Alquati & Cia., Rua Ernesto Alves 1436, Caxias do Sul, Rio Grande do Sul, Brasil. LEATHER HANDBAGS. Conimpex Ltda., Comércio Nacional Importação e Exportação Ltda., Avenida Otávio Rocha 134, conjunto 93, Caixa Postal 1377, Porto Alegre, Rio Grande do Sul, Brasil. MEN'S SHIRTS. EMBRACIL, Empresa Brasileira de Comércio Internacional Ltda., Rua Julio de Castilhos 86-701, Copacabana, Rio de Janeiro, 20.000 Brasil. LEATHER HANDBAGS, leather clothing. Protopel Ltda., Rua Santos Dumont 571, Caixa Postal 52, Pelotas 96.100, Rio Grande do Sul, Brasil. COSTUME JEWELRY. Jodicke & Cia. Ltda., Caixa Postal 2395, 30.000 Belo Horizonte, Minas Gerais, Brasil. HOME DECOR NATURAL DRIED FLOWERS in variety of arrangements. Flores Decorativas Ltda., Caixa Postal 55, 32.200 Contagem, Minas Gerais, Brasil. BATHROOM FIXTURES. Cidamar S.A. Indústria e Comércio, Rua Bom Jesus de Pirapora 3383, Caixa Postal 45, Jundiaí, São Paulo, Brasil. Telephone: 2074 or 2075. Telex: 445-3105. Attention: Mr. Miguel May. SYNTHETIC BLANKETS. Oscar Bergren S.A., Rua Alvaro Ribeiro 88, Americana, São Paulo, Brasil. PIANOS. Pianofatura Paulista S.A., Avenida Raimundo de Magalhães 5090, CEP 05092, São Paulo, S.P., Brasil. SILVERPLATED TABLEWARE; wooden ice buckets, trays and salad bowls; complete line of pewter mugs, plates, pitchers and ash-trays. Representações Knudsen Ltda., Rua Teodoro Sampaio 763, loja 3, São Paulo, S.P., Brasil. FURNITURE. ASSISTEXPORT, Exportação de Móveis e Manufaturados de Madeira Ltda., Rua da Consolação 348, 14° andar, São Paulo, S.P., Brasil. BEDS. Indústria e Comércio de Móveis Dircilda Ltda., Rua Regente Feijó 345, Santo André, São Paulo, Brasil. Telephone: 4496499 or 449-6604. FLOOR TILES, mosaic cubes. Cerâmica Chiarelli S.A., Rua Domingos Brunelli 180, Caixa Postal 8687, Mogi-Guaçu, São Paulo, Brasil. Attention: Mr. Oscar Chiarelli. Cable: CHIARELLI. Telephone: 6-0404. FURNITURE, wooden. Aglopar S.A. Madeiras Aglomeradas, Praça Antonio Prado 33, 11° andar, São Paulo, S.P., Brasil. Attention: Mr. Jacques E. Matalon. Telephone: 43-9228 or 37-2226.

TEXTILES POLISHING FELT FOR OPTICALS AND CRYSTALS; felt for the manufacture of tennis balls, Textil Renner Ltda., Caixa Postal 613, 90.000 Pôrto Alegre, Rio Grande do Sul, Brasil. TERGAL, nylon. Indústria e Comércio Nychatex Ltda., Rua Teodoro Campaio 987, São Paulo, S.P., Brasil. Attention: Mr. Simão Isaac. Telephone: 282-7208. COTTON TEXTILES. Conificio Moreno S.A., Rua da União 27, sala 603, 50.000 Recife, Pernambuco, Brasil. SILK, also cotton. Tecelagem de Seda e de Algodão de Pernambuco, Avenida Visconde de Suassuna 393, 50.000 Recife, Pernambuco, Brasil. JUTE, processed, also woven jute fabrics. Cia. Textil de Castanhal, Rua 15 de novembro 226, Belem, Pará, Brasil. Cable: COTEXTIL. Telephone: 1802. KNITTED FABRICS. Grande Tinturaria Paulistana S.A., Rua Restinga 113, Tatuapé, São Paulo, Brasil. Attention: Mr. João Adib Numes. Telephone: 295-0842. WOOL POLYESTER, viscose, pure wool, other textiles for men's clothing. S.A. Moinha Santista, Caixa Postal 507, Rua Boa Vista 150, São Paulo, S.P., Brasil. GREY COTTON SHEETING, cotton yarns, printed cotton, dyed cotton. Textil Brasilminas Ltda., Caixa Postal 965, Rua Bahia 360, andar 9, Belo Horizonte, Minas Gerais, Brasil. RAYON. Fabril Scavone S.A., Rua João Annes 143, São Paulo, S.P., Brasil. KNIT FABRICS. Associação das Malharias do Nordeste do Estado do Rio Grande do Sul, Rua Sinimbu 1912, sala 2, Caxias do Sul, Rio Grande do Sul, Brasil. SISAL YARN, ramie fabrics. IOCHPE TRADE Comércio Internacional S.A., Rua São Bento 365, 10° andar, Caixa Postal 3702, 01.00 São Paulo, S.P., Brasil. Telephone: (011) 32.92.69, 35.76.00, 33.70.72. Telex: 391 11 23.173 IOCH-BR.

STEEL ANGLES, steel flat bars. Perfilados NMF Ind. Com. S.A., Avenida do Contorno 4451, 30.000 Belo Horizonte, Minas Gerais, Brasil. Attention: Mr. Sebastião Franca Drummond. CASTINGS IN DUCTILE OR GRAY IRON, according to SAE or ASTM or DIN standards, weighing up to 110 lbs., custom made, any shape, size or quantity. NOMSA S.A., Avenida Franklin Roosevelt 39, Rio de Janeiro, RJ, Brasil. Cable: LARUPA. Telex: 21/ 22737. CAST IRON BALLS for crushing minerals; used by cement and other industries. NOMASA S.A., Avenida Franklin Roosevelt 39, Rio de Janeiro, RJ, Brasil. Cable: LARUPA, Telex: 21/22737. GRANITES, marbles, quartzites, in blocks and slabs, rough or finished. NOMASA S.A., Avenida Frankline Roosevelt 39, Rio de Janeiro, RJ, Brasil. Cable: LARUPA. Telex: 21/22737. PACKAGING MATERIALS, made of polypropylene, for cereals, chemical products, fertilizers, etc. Cilermando G. Cabral, CATA (Cia. Amazonia Textil de Amiagem), Avenida Bernardo Sayão 138, Belém, Pará, Brasil. INDUSTRIAL GLOVES. CONFIL Confecções Industriais Ltda., Estrada do Brejo 723, Linha do Tiro, Recife, Pernambuco, Brasil. Telephone: 28-3020. INDUSTRIAL WORKING GLOVES & OVERALLS. PROTOPEL Equipamentos de Proteção, Caixa Postal 52, 96.100 Pelotas, Rio Grande do Sul, Brasil. PHOTOELECTRIC LIGHTING CONTROL DEVICES. STIELETRONICA, Avenida Itaóca 2086, ZC 24, Rio de Janeiro, RJ, Brasil. SEAMLESS TUBES for petrochemical and steel industries, centrifugal pumps, structural steel, boilers, aluminum products. COMIEX, Comercial de Imp. e Exp. Ltda., Caixa Postal 1645, Rio de Janeiro, RJ, Brasil.

MISCELLANEOUS SEEDS for trees, especially eucalyptus. Franco-Suissa Importação, Exportação e Representações Ltda., Rua Machado Bittencourt 388, Caixa Postal 2962, São Paulo, S.P., Brasil WATCH BANDS. Bison Artefatos de Couros Ltda., Rua Caneca 109, 01.307 Paulo, S.P., Brasil. PERCUSSION INSTRUMENTS. Overseas, Caixa Postal 8825, São Paulo, S.P., Brasil. TOOTHPICKS. SB Promoção de Exportação S/C Ltda., Caixa Postal 4694, CEP 0.1000 São Paulo, S.P., Brasil. RAWHIDE DOG CHEWS. TACOLAC Indústrias Químicas Ltda., Rodovia Campinas, Aguas da Prata, Km. 52. Caixa Postal 20, Mogi Mirim, São Paulo, Brasil. AMAZON INDIAN BASKETRY, all sizes. Richard Melnyk, Caixa Postal 86, Manaus, Amazonas, 69.000 Brasil.

ASTA World Travel Congress held in Rio

The 45th ASTA (American Society of Travel Agents World Travel Congress will be held in Rio de Janeiro from October 26 to 31. The President of Brazil, His Excellency Ernesto Geisel, has accepted an invitation to participate in the opening ceremonies of the Congress on Monday, October 27.

In a communique sent by the Minister of Industry and Commerce to ASTA it was stated that the President's presence at the Congress was further evidence of the importance which Brazil attaches to the meeting. It was called "a priority event for the development of tourism in Brazil ... a week in which media, schools, associations, state and local authorities are being called upon by Brazil's President to help improve the awareness of citizens of the fact that tourism is an important factor in the promotion of the social and economic development of the country."

To further facilitate increased tourism, Embratur is sponsoring the creation of a new hotel infrastructure for Brazil. About 30,000 new hotel rooms have already been added and the number is expected to increase to 75,000.

Zones have been earmarked for tourist development in Brazil and are being regulated to protect the country's ecology and natural beauty. New sites and beaches are being developed to avoid density problems. By escaping a tourist "population crunch", it is expected that Brazil will add a new dimension of pleasure for its visitors.

eyes of the ASTA travel agent, that we have an abundance of travel experiences for the tourists of the world to see and enjoy. Embratur's total commitment is not unlike what so many other nations have done. It is an important investment in the future ..."

Farhat has also announced plans for the development of a joint tourism program which will get underway immediately following the Congress in Rio.

The creation of a post-Congress tourism development program is new step in ASTA's commitment to Congress site cities. It is a broad effort to create a widescale tourism market.

According to Farhat, the ASTA Congress itself is the first major step in the new program and will create a heightened awareness of Rio and Brazil. It is expected it will be a major catalyst in increasing the number of visitors to Brazil in the upcoming years. It is estimated that the ASTA Congress, which is the largest single annual travel industry event, will attract over 5,000 travel agents and tourism industry leaders from approximately 115 countries to Rio de Janeiro. It is estimated that more than US$4 million is being invested by the Brazilian Government to prepare for the Congress and follow-up programs.

Said Farhat, president of EMBRATUR, Brazil's Tourist Authority, has stated the following regarding the ASTA Congress: “I regard the selection of Brazil as the location for ASTA's 45th World Congress, a singular opportunity for us as a nation to show the world through the

Congress

The ASTA Congress in Rio will include: .... A series of in-depth educational seminars aimed at sharpening an agent's professional skill. Seminars will show agents the latest techniques on management and employee motivation, how to book group travel, how to build a cruise clientele and how to encourage vacation among individuals who never traveled.

... The widest selection ever offered to registrants of pre-and post-familiarization tours throughout Brazil and South America. . . . . A 250-booth trade show which was sold out. .... The world-renowned Rio Carnival, recreated for delegates, and a variety of entertainment adventures.

The theme of this year's Congress is "Progress through Professionalism". Three mornings of the five-day Congress will be devoted to educational programs.

One of the seminars to be held, "How to Build Cruise Profits", will be moderated by Hugh Downs, one of America's most well-known television personalities.

ASTA is the world's largest professional travel trade organization. The Society's purpose is to enhance the professional standards and economic well-being of the travel agency industry and help expand world tourism. Included among its more than 13,000 members are travel agents and tour operators worldwide and Allied Member airlines, steamship companies, railroads, bus lines, car rental firms, hotels, resorts, government tourist offices and other related organizations in over 120 countries.

October, 1975 Vol. 27, No. 581

Brazil should be self-sufficient in wheat next year, according to a statement by the Minister of Agriculture, Alysson Paulinelli. In view of the importance of this commodity for internal supply and its influence on the country's balance of trade, due to the necessity for importing, self-sufficiency in wheat production has a high priority for the Ministry of Agriculture. In 1974 the country produced 2.8 million tons for an estimated consumption of about 4 million tons, according to official sources. Despite recent frosts, it is expected that output in 1975 should reach 3 million tons, while the demand for the commodity will be to the order of 4.2 million tons. Before the frost, estimates of the Brazilian wheat harvest had been for 3.6 million tons. The Brazilian wheat harvest has been increasing in recent years as the result of government incentives for its cultivation.

In the first seven months of 1975, Brazilian manufacturers of machines and equipment sold approximately US$350 million worth of merchandise, with the assistance of financing granted by the Special Agency for Industrial Financing (FINAME), of the National Bank for Economic Development (BNDE).

The Eximbank has granted a six-year loan of US$3.3 million, at 81/2%, to Confab Industrial, of São Paulo, to finance purchases from the United States of machinery and equipment, for a steel tank manufacture and a tube mill. A loan for an equivalent amount has been granted by a US private bank.

The new underwater cable which will link Brazil and the United States will be ready in 1977 and will cost US$140 million. The charting of the course of the cable, which will go from Fortaleza to the Caribbean, has already been finished.

J. Torquato Comércio e Indústria, of Brazil (60%), Cía Asturiana de Zinc, of Spain (18%), Usimeta, of Belgium (185), and the British Amalgamated Metal Corporation (4%), have set up a new company, Paraibuna de Metais, to build a refinery at Juiz de Fora, Minas Gerais, with an annual production capacity of 30,000 tons of zinc after 1979.

One contract has been awarded jointly to the five Brazilian-Paraguayan consortia which put in individual bids to dig the canal that will divert the Paraná River while the dam for the Itaipu hydroelectric project is being built.

This decision, announced in August by Itaipu Binacional, the company formed to manage the project, will lessen the need to import earth-moving equipment and other capital goods during the first stage of the project.

Work on the canal will begin almost immediately, with the first two of fourteen generators scheduled to be installed and working in 1983.

The future metropolitan airport in São Paulo will cost about US$500 million. Construction should begin in the middle of next year and the airport is expected to be completed in five years, according to a statement by the São Paulo State Department of Transportation. The site of the airport, however, was not disclosed. The Department of Transportation studies embrace an overall plan for airport policy in the State of São Paulo.

General Motors do Brasil has exported 15 R-35 trucks, with a cargo capacity of 32 tons, to Argentina.

An additional 10 million coffee trees will be planted in the state of Rio de Janeiro, which was Brazil's main coffee planting area in the last century.

This move, following July's disastrous frosts in the major coffee-producing states of Paraná, São Paulo and Minas Gerais, is in line with the Government's policy of replanting coffee plantations further north, outside the frost area.

To help coffee growers recover losses, the Government has allotted US$850 million for loans at low rates.

According to the president of Petrobras, Araken de Oliveira, the oil well now being drilled on the Campos shelf will allow a daily yield of 200,000 barrels of petroleum, while the reserves are estimated at 330 million cubic meters. This potential, however, is surpassed by the oilfields discovered on the shelf off the State of Rio Grande do Norte, especially the Ubarana oil field, and Petrobras will thus concentrate a greater amount of equipment at the latter site.

Regarding prospecting in the Amazon region, he said that Petrobras has re

The Instituto Brasileiro de Geografia e Estatística (IBGE) has forecast the pop

EMBRAER, Brazil's national aircraft company, has announced a US$5 million

(Continued on Page 8)

Page 6

New look for BGTB offices in New York

The Brazilian Government Trade Bureau offices in New York have had a major face-lift. On September 25 a completely remodeled Trade Bureau was inaugurated in the presence of the Brazilian Minister of Foreign Affairs, Ambassador Antonio F. Azeredo da Silveira, several Brazilian and North American officials and about 300 other invited guests were on hand for opening festivities.

The Brazilian Government Trade Bureau, under the directorship of the Ministry of Foreign Affairs (Itamaraty), functions on four levels: (1) to supply trade information to American importers and Brazilian exporters; (2) Direct Promotions, consisting of the participation in major expositions to promote Brazilian products, and the issuing of tourist information; (3) market studies; (4) assistence to Brazilian businessmen in New York and to Americans interested in importing from or investing in Brazil.

The remodeling of the New York offices to better serve in the activities of trade promotion is a pilot project, which will be extended into other centers of interest in the United States, like the cities

of Dallas, Atlanta and Chicago.

The emphasis on reaching US markets is understandable when one considers the important part that the United States plays in the Brazilian trade picture. Overall trade with the United States represented US$4 billion 800 million in 1974, of which US$1 billion 700 million were Brazilian exports.

The United States is also the largest single investor in Brazil, with US$2 billion having been invested and reinvested by the end of 1974, distributed among an ample variety of economic activities.

The Brazilian Government continues to encourage a policy of increasing and diversifying of exports of manufactures and semi-manufactures. In the distribution of Brazilian exports, the United States, until 1967, was in the first position as major buyer of Brazilian goods. This position was taken over by the European Economic Community (EEC) after 1968.

The importance of Brazilian exports to the United States has great prospects for growth, since the Brazilian participation in the US import schedule remained at 1.7% from 1970 to 1974.

The composition of the Brazilian export schedule for the United States has undergone considerable modifications in the past few years. The participation in the category of “basic products” has tended to decrease, passing from 67% in 1971 to 41% in the first half of 1974. On the other hand, though, in the categories of "semi-manufactures" and "manufactures" participation has increased from 3.4% and 25.8% in 1971 to 14.1% to 43.4% in the first half of 1974.

All of these facts point to the necessity of increasing the activities of trade promotion in the United States. For this reason the Brazilian Government Trade Bureau in New York has expanded and reorganized its participation in this sector. The New York operations reflect the ever-increasing interest on the part of the Brazilian government to constantly improve its activities in the United States.

The Brazilian Government Trade Bureau is located at 551 Fifth Avenue, Suite 210, New York, New York 10023. (Telephone: 212-682-1055). There are office hours daily from 10:00 a.m. to 5:30 p.m.

Hilton plans expansion in Brazil

To increase lines in the Northeast

Mr. Jose A. Menendez, Area Vice President Latin America for Hilton International and Prince Roman Sangusko recently announced that Hilton do Brasil, a subsidiary of Hilton International and Gerbur S.A., have signed a management contract under which Hilton will manage a new 250 room hotel, owned by Gerbur, located on Rua Martins Fontes in São Paulo. The hotel is already in construction under the management of Sisal S.A. Completion is scheduled for the spring of 1976. The hotel will offer an intimate club-like atmosphere and contain full facilities, including a grill room, bar, banquet and meeting rooms, garage, swimming pool and health club. Brasilton São Paulo is Hilton International's second hotel in São Paulo.

der construction by early 1976 and be well on its way to the achievement of the ambitious goals set forth for the company two years ago. This program for Brazil represents Hilton's single largest effort in its global operations because of its faith in the tremendous development of the Brazilian economy. It will not only contribute to substantial additional employment throughout the country, but will represent an important contribution to Brazil's tourist capability, including the development of professional skills in this important sector.

The Banco do Nordeste has recently approved, in Fortaleza, financing in the amount of CR$520 million for the telecommunications companies of the States of Ceará (CR$200 million), Paraíba (CR$50 million), Bahia (CR$100 million), Alagoas (CR$70 million) and Minas Gerais. The funds will be distributed to the States through Telebrás and be used for the expansion and modernization of existent telecommunications systems.

Exports are up, imports the same

Brasilton

To be known as Brasilton São Paulo, it will be the initial hotel completed under a program first announced in April 1973, by Hilton International and Sisal S.A. Under this program the two companies formed a new organization, known as Brasilton Hoteis e Turismo S.A. The objective of this company, with the cooperation of EMBRATUR, through its fiscal incentives, is the development of 30 to 50 first class hotels across the country.

Brasilton São Paulo will be the flagship of this unique new group of hotels, but development and planning work has also been proceeding on a variety of other Brasilton projects. Next month the company expects to start construction of its first prototype low-rise Brasilton, a 150 room hotel in the city of Contagem, the important industrial suburb of Belo Horizonte. Closely following will be a second 150 room low-rise hotel on Via Dutra highway, in the rapidly growing industrial center of Taubate, between Rio de Janeiro and São Paulo. Brasilton owns a beach front site in Bahia, and the company has acquired a prime location for a 250 to 300 room high-rise hotel in the city center of Belem, Pará. Planning work is almost complete for this Brasilton. In addition a bid has been submitted to the city of Belo Horizonte for a key site, and a favorable decision is anticipated shortly.

Brazilian exports reached, from January to August of this year, a little less than US$6 billion, representing an increase of close to 27% in relation to the same period in 1974. This information comes from preliminary data disclosed in São Paulo recently by the Director of the Foreign Trade Department of the Banco do Brasil (CACEX), Benedito Fonseca Moreira. He also stated that imports were maintained at the same level as last year

close to US$8 billion. Benedito Moreira said that "despite the present situation of international trade, there exists a market."

In his view, what is needed is "a selling ability, the establishment of an aggressive marketing policy and the informing of the business community that the reduction of trade deficits and payments also depends on their performance and not just on government measures.'

According to the director of CACEX, reducing the trade deficit is simple - imports must be reduced. "However

he emphasized – it is not an interesting option for the country if it wants to maintain high rates of economic growth. It is necessary that the 20 thousand firms which operate in foreign trade understand the problem and reduce their imports voluntarily and rationally, as well as increase their export levels, principally in value terms."

He stated that all Brazil's foreign trade policy is geared towards the increase of exports and not towards the restriction of imports. But – he pointed out – some measures of a restrictive character had to be taken in response to some restrictions placed on the trade flow on the part of industrialized countries.

Benefits

Approximately 330 Northeastern municipalities will benefit, receiving new telephone lines or modernizing the already-existent infrastructure. Dozens of cities will be integrated into the National Communications System by DDD (Direct Long-Distance Dialing). The term of the financing will be ten years, with a three-year grace period.

The Telecommunications company of Paraíba will invest CR$50 million to raise the number of telephone lines from 9,429 to 43,100 in the State, in a first-stage effort. It is hoped that, by 1990, Paraíba will have 137,150 telephone lines. Fortyfour cities in the State will have access to the DDD system.

In Alagoas, a special project phase will go to the restructuring of the telephone system of 94 municipalities and the installation of new terminals and the modernization of existent services. By 1979, Telecomunicações de Alagoas S. A. expects to increase its lines from 10,310 to 35,116. In Ceará, 84 municipalities will receive local and interurban telephone service.

Bahia

The firm, Telecomunicações da Bahia S.A., is going to install modern urban telecommunications systems in 90 cities. There will be 116,000 telephone lines in Salvador and 74,000 in the interior of the State – 190,000 new lines in all.

In Minas Gerais, the funds of the Banco do Nordeste will benefit the Northern Region of the State, within the area under SUDENE jurisdiction.

The agreement will be handled by the Montes Claros agency of the Banco do Nordeste. With this money, Telecomunicações de Minas Gerais S.A. intends to double the number of existent telephones in the region and integrate various cities into the National Communications Program.

Hydroelectric power plant gets loan

The project will consist of the following works:

... Construction of a main rock-filled dam with a sloped impervious core and three auxiliary compacted-earth dams. ..... Construction of a concrete structure spillway and four 220-meter diversion tunnels. ..... Construction of the Salto Santiago Hydroelectric Plant, comprising an intake, intake canal, penstocks, semi-exterior powerhouse and spillway and the installation of four 333,000-Kilowatt turbogenerator groups with allowance made for the installation of two additional groups.

On completion in 1980, the project will supply electric power to the southern and southeastern/west-central regions of Brazil, through a transmission system to be built under a separate program, until the Itaipú hydroelectric plant, scheduled for construction on the Paraná River, enters into operation in 1983. Thereafter, the Salto Santiago production will be allocated to meet electric power demand in southern Brazil.

To sustain its rapid industrialization and high economic growth rate of recent years, as well as to relieve its heavy dependency on imported petroleum, Brazil is speeding up the construction of hydroelectric power plants, including the Itaipú complex with a projected installed capacity of 10.7 million kilowatts; the Salto Santiago Plant and the country's first nuclear power plant, being built near Angra dos Reis, in the southeast region, with an installed capacity of 625,000 kilowatts.

In 1962/74 the installed electric power capacity in Brazil tripled from 5,729,000 kilowatts in 1962 to 17,199,000 kilowatts in 1974. Of this amount, 1,636,000 kilowatts of installed capacity (approximately 10%) is located in the southern region where the Salto Santiago plant will be built.

The Bank had approved a previous US$21.3 million loan in 1969 to help ELETROSUL finance construction of the 220,000-kilowatt Passo Fundo hydroelectric power station in the Uruguay River basin.

Brahma Chopp, the largest selling beer in Brazil, was recently introduced into the New York and New England areas, supported by an advertising campaign on radio and in newspapers, aimed primarily at the large Brazilian and Portuguese population in these markets.

Edith Friedland, president of EFCO Importers, the firm responsible for distribution of Brahma in the United States, reports brisk initial sales and distribution in New York City, Newark and in the New Bedford area of Massachusetts.

Distributed in northern New Jersey by Hoffman Distributors, Carlstadt, New Jersey, and in New York City by Home Siphon Distributing Co., Brahma is now being served in most of the popular Brazilian restaurants and night spots in the area. Delicatessens specializing in imported beers are now featuring Brahma Chopp as a popular addition to their beverage selection. New England distribution of Brahma is being handled by United Liquors, Fairhaven, Massachusetts.

For more information about Brahma Chopp one should call: 215-886-6910, or write EFCO Importers, P.O. Box 741, Jenkintown, Pennsylvania 19046.

REPUBLICATION Bonafide news media may republish any or all of the material in this Brazilian Bulletin, though a creditline is requested.

The Banco Central do Brasil (BCB), through its Rural Credit Department, is helping raise national agricultural and livestock production through the execution of a global program of supervised credit to farmers and cattle raisers throughout the country.

The total cost of the program is estimated at US$80 million, of which an Inter-American Bank loan will cover 50%, the BCB 40% and financial agents the remaining .

as small and medium-scale in Brazil, 3.5 million operate without assistance from credit institutions.

To aid in this program the Inter-American bank recently approved a US$40 million loan to go toward agricultural credit for medium and small-scale producers and rural cooperatives in Brazil.

The Bank had approved three previous loans totalling US$81.5 million to help

finance agricultural and livestock credit programs in Brazil.

The present loan was extended from the Bank's Fund for Special Operations for a term of 20 years at an interest rate of 4% per year. Up to US$15 million of the loan will be disbursed in dollars or other non-Brazilian currencies and up to the equivalent of US$25 million will be disbursed in Brazilian cruzeiros.

Specifically

, the program is expected Move is planned for paper industry

to: ... Increase directly the productivity and income of approximately 6800 medium and small-scale rural producers and of some 14,000 additional producers who will benefit by the reinvestment of loan recoveries. ... Strengthen the activities of existing rural cooperatives and encourage the formation of new cooperatives, thereby benefitting approximately 180,000 cooperative members of whom more than 70% will be medium and small-scale producers.

Coordinate the provision of rural extension services at the producer level, stimulate the use of fertilizers and modern production techniques and help create new employment opportunities in the rural sector.

Brazil's new economic policy awards high priority to the modernization of the agriculture and livestock sector and particularly the development of small and medium-scale farming upon which 26 million persons depend for their livelihood. Of 4.4 million farm units classified

In accordance with the process of industrial decentralization, the installation of new factories for paper and cellulose, in Brazil, should gradually be transferred from the South to the Northeast. The major incentive for such a move is to take advantage of the wood potential of the Amazon and the cane bagasse in the sugar-producing regions, principally for export production. This program aims at reaching an exportable surplus of 20 million tons, by increasing quantities, after 1983 and making overall investments in the order of US$17 billion.

This disclosure was made recently by the Council of Industrial Development at the opening of the First Group of Technical Lectures on the Paper and Cellulose Industry.

The National Paper and Cellulose Program, which forecasts a production by 1980 of 3 million 680 thousand tons of paper, 4 million 200 thousand tons of cellulose (half for the foreign market) and 650 thousand tons of mechanicallyground wood pulp, will need fixed investments estimated at US$2.760 billion.

Decentralization

The development of the Brazilian paper and cellulose industry has been quite rapid, passing from 278 thousand tons in 1962, to 972 thousand tons in 1973, and close to 1 million 200 thousand tons last year. In 1973, 95% of the national production was concentrated in four states (São Paulo, Paraná, Santa Catarina and Rio Grande do Sul). A move to the regions of the North and Northeast is viable, considering the raw material availability, not only of the wood and the cane bagasse, but also of the sisal and other tropical fibers.

The Radam Project, in a survey of natural resources of the region of Tapajós (an area of 293,750 square kilometers, including zones of Pará, Amazonas and Mato Grosso), verified the existence of a large and valuable wood potential.

The implementation of a special export program will be an important factor in the interiorization of the nation's development, due to the scale of projects and the natural movement to areas removed from urban centers.

Page 7

(Continued from Page 2) sale of 15 aircraft to Uruguay - 10 agricultural Ipanemas and 5 transport Bandeirantes. The Ipanema, a single-prop crop duster, will be used in Uruguay's agricultural modernization program. The Bandeirante, a twin-engine turbo-prop carrying 15 passengers or cargo, will be used to link remote cities of the interior with the more developed regions of Uruguay. All aircraft will be delivered by November 1.

months, at an annual interest rate : 7.5%. The money will go for the pa chase of French equipment for the si ploration of petroleum on the continens shelf, especially in the Garoupa field. T's production of this field will reach thousand barrels a day in the next months. Araken stated that by 1980 to country will be producing 500 thousan barrels a day, for a one million barre consumption.

J. M. Huber Corporation has formed a new company in Brazil with Construtora Mendes Junior S.A., to explore large clay deposits in the state of Pará.

Plans call for the new company, called Kaolin do Pará, to construct a processing plant with initial capacity of 280,000 tons per year of a full range of coating and filler clay similar to clay now produced by Huber for the paper industry in the United States.

Production is earmarked for European, Japanese and Brazilian markets. The investment required for the project is estimated at US$25 million.

Huber says the clay mine and plant will "utilize the latest technology to take full advantage of the outstanding characteristics of the company's kaolin clay deposits in Brazil.”

Mendes is one of the largest Brazilian construction companies and is primarily engaged in the construction of highways, railways, bridges and hydroelectric power plants.

Huber is one of the largest producers of kaolin clay in the United States, with an annual capacity of over 1 million tons.

The First Brazilian Petrochemical Congress is to take place between November 8th and 12th at the Hotel Nacional, in Rio de Janeiro. Under the auspices of the Brazilian Institute of Petroleum, this Congress will be assembling all those interested in the petrochemical industry and it will allow for the interchange of ideas and experiences among those working in this sector.

The resources appropriated for the Polamazônia Program in the 1975) period will be doubled, climbing to CRS billion, in accordance with planning et tablished by the Banco da Amazônia. Th initial plan called for CR$4 billion to b spent on projects in the region, the money originating from federal agencies and the private sector. The remaining CR$4 billion will be financed by th: Banco da Amazonia.

The Banco da Amazônia intends to support the goals of Poloamazônia bi means of two plans of financing: one fr agriculture and cattle raising and th: other for industry and infrastructure The resources in the rural credit secto will reach CR$2.5 billion and those ir industrial and infrastructural credit wi be CR$1.5 billion.

A contract was signed recently in Bangkok, Thailand, with the Brazilian firm SANBRA (Sociedade Algodoeira do Nordeste Brasileira S.A.) for the installation of a vegetable oil refinery. This is a case where Brazilian technology and knowhow is being put toward export credit, which could be applied to many other tropical countries. Brazil is becoming a reliable and creditworthy source of modern process development in the important field of foodstuffs for the growing populations of the world.

This edible oil refining installation will be not only the largest in Thailand, but the biggest in South East Asia, with an annual capacity to handle 30,000 tons of soybean, 20,000 tons of rice, 15,000 tons of cottonseed and 15,000 tons of kapok, from which, in various seasons, oil will be extracted and refined. A packing plant for retail outlets is also part of the project.

The Soviet Union could become a reg. ular customer for Brazilian soybeans, according to spokesmen for the Companhia Brasileira de Entrepostos e Comércio (COBEC). The Brazilian firm has been meeting with Soviet representatives and the first direct sale of soybeans to the USSR is at hand.

COBEC has already exported this year one million tons of soybeans, 150 thousand tons of the bran and 20 thousand of the oil, as well as 300 thousand tons of corn, presently on the Chicago exchange.

Work on the Hydroelectric Plante Itaúba, in the state of Rio Grande do Sul is moving at a fast pace. The plant, or the banks of the Jacuí River, is being built by Cia. Estadual de Energia Ele trica. Itaúba should begin operations in 1978, increasing by 500 thousand KV the installed capacity of the State.

Polibrasil S.A. Indústria e Comércio, the firm resulting from the merger of Pe troquisa Shell Brasil and the Grupo Coimbra Bueno, will begin construction on its petrochemical complex. The investment of Polibrasil in the project is about US$90 million and when industria operations begin it will produce 50 thor sand tons annually of polypropylene, uti lizing propylene supplied by Petroqui. mica União. The construction work is being done by Construtora Dumez and project management and coordination is being handled by Montreal Engenharia S.A., using know-how provided by Shell International.

The Banco do Brasil has inaugurated a new branch office in Los Angeles. Operations began with a US$35 million credit extended to the Superintendencia Nacional da Marinha Mercante (National Superintendency of the Merchant Marine). The credit agreement was signed at opening festivities last month by the president of the bank, Angelo Calmon de Sá.

The Rio Othon Palace Hotel is ready this month, in time for the Asta Convention. The Hotel is located on Copacabana Beach in Rio de Janeiro. There are 609 rooms and suites, as well as a Convention Hall for 700 delegates and various restaurants and bars. There is also a roof-top swimming pool and all the trimmings. Pontual Arquitetos was responsible for the architectural project.

The president of Petrobrás signed in September, in Paris, a loan agreement with a consortium of European banks, headed by Credit Lyonnais. The loan will be paid in eight years and six

Nor-Shipping good for Brazilian interests

Contacts and agreements with Norwegian authorities and firms interested in trade enabled the extension of business in the varied sectors of maritime, air, rail and road transport, as well as the disclosure of the principals and goals of the government plan for economic development in general and the Brazilian maritime transport policy in particular.

The various meetings with Norwegian firms resulted in a visit by them to Brazil, to examine the possibility of supplying equipment for the Brazilian Merchant Marine and the naval industry. They were also interested in associating with Brazilian shipping companies for a transfer of Norwegian technology. Thune Eureka A/A, belonging to the Kvaerner

group, and associated with Santa Matilda, became interested in the production of scuttles and ship equipment, and saw a possibility for the manufacture of electric locomotives in Brazil. Another firm – Asea, of Sweden – showed similar interests and made contacts to produce electric locomotives under a licensing agreement

In meetings with shipowners and authorities, the Minister of Transportation confirmed that the increase of Brazilian production and of Brazilian foreign trade requires the expansion of Brazil's merchant fleet. He further believes that this growth will benefit other nations, includ. ing Norway, which will take advantage of the large volume of transported cargo.

de Negotiations involved the order of 25 Niessels, to be constructed in Brazilian

hipyards for English, German, Greek, Torwegian and Danish buyers.

Besides the immediate results of the egotiations, Brazilian participation in

at fair opened doors for future busi.

ess. The sales effected and the negotianons scheduled for the future were so Impressive that the Oslo press noted: Brazil is participating, this year, for the

econd time in the Nor-Shipping Fair and 2014 is probably the participant which, up To the present, has obtained the largest SAC:ontract." 1x: The Brazilian delegation, headed by i he Minister of Transportation consisted of representatives of the National Superabrintendency of the Merchant Marine, the an Department of Foreign Trade (CACEX) of the Banco do Brasil, Esabrás, the st Banco de Desenvolvimento, Hempel Tino the tal Marítimas and the shipping com25 kpanies of CCN, So/Ebin, Ishibrás, Docealix-nave and Frota Oceânica.

The State of Rio Grande do Sul plans o export beef to the Middle East before he end of this year (the initial transacion would correspond to 60 thousand nead) in a deal made through Braspetro.

The president of the Federation of Meat Cooperatives has stated that the ransaction will be made within the sysem presently adopted by the government (exchange of foodstuffs for petroeum), but specific terms are pending furher contact with the Arab importers.

The new road for industrial expansion in Brazil leads to the South of Minas Gerais. This was the central theme of a seminar on the decentralization of Brazilian industry, which the State of Minas Gerais held recently in Poços de Caldas. The governor of the State spoke at one session before over 150 businessmen,

most of them from São Paulo, on the o economic potential of his state. He No pointed to the advantages of a viable in201 frastructure, fiscal incentives and geo

graphical location, which the State offers to parties interested in investing there.

(Continued from Page 2) sale of 15 aircraft to Uruguay - 10 agricultural Ipanemas and 5 transport Bandeirantes. The Ipanema, a single-prop crop duster, will be used in Uruguay's agricultural modernization program. The Bandeirante, a twin-engine turbo-prop carrying 15 passengers or cargo, will be used to link remote cities of the interior with the more developed regions of Uruguay. All aircraft will be delivered by November 1.

J. M. Huber Corporation has formed a new company in Brazil with Construtora Mendes Junior S.A., to explore large clay deposits in the state of Pará.

Plans call for the new company, called Kaolin do Pará, to construct a processing plant with initial capacity of 280,000 tons per year

of a full

range

of coating and filler clay similar to clay now produced by Huber for the paper industry in the United States.

Production is earmarked for European, Japanese and Brazilian markets. The investment required for the project is estimated at US$25 million.

Huber says the clay mine and plant will "utilize the latest technology to take full advantage of the outstanding characteristics of the company's kaolin clay deposits in Brazil."

Mendes is one of the largest Brazilian construction companies and is primarily engaged in the construction of highways, railways, bridges and hydroelectric power plants.

Huber is one of the largest producers of kaolin clay in the United States, with an annual capacity of over 1 million tons.

The First Brazilian Petrochemical Congress is to take place between November 8th and 12th at the Hotel Nacional, in Rio de Janeiro. Under the auspices of the Brazilian Institute of Petroleum, this Congress will be assembling all those interested in the petrochemical industry and it will allow for the interchange of ideas and experiences among those working in this sector.

The resources appropriated for the Polamazônia Program in the 1975/79 period will be doubled, climbing to CR$8 billion, in accordance with planning established by the Banco da Amazônia. The initial plan called for CR$4 billion to be spent on projects in the region, the money originating from federal agencies and the private sector. The remaining CR$4 billion will be financed by the Banco da Amazonia.

The Banco da Amazônia intends to support the goals of Poloamazônia by means of two plans of financing: one for agriculture and cattle raising and the other for industry and infrastructure. The resources in the rural credit sector will reach CR$2.5 billion and those in industrial and infrastructural credit will be CR$1.5 billion.

A contract was signed recently in Bangkok, Thailand, with the Brazilian firm SANBRA (Sociedade Algodoeira do Nordeste Brasileira S.A.) for the installation of a vegetable oil refinery. This is a case where Brazilian technology and knowhow is being put toward export credit, which could be applied to many other tropical countries. Brazil is becoming a reliable and creditworthy source of modern process development in the important field of foodstuffs for the growing populations of the world.

This edible oil refining installation will be not only the largest in Thailand, but the biggest in South East Asia, with an annual capacity to handle 30,000 tons of soybean, 20,000 tons of rice, 15,000 tons of cottonseed and 15,000 tons of kapok, from which, in various seasons, oil will be extracted and refined. A packing plant for retail outlets is also part of the project.

Work on the Hydroelectric Plant of Itaúba, in the state of Rio Grande do Sul, is moving at a fast pace. The plant, on the banks of the Jacuí River, is being built by Cia. Estadual de Energia Elétrica. Itaúba should begin operations in 1978, increasing by 500 thousand KV the installed capacity of the State.

Polibrasil S.A. Indústria e Comércio, the firm resulting from the merger of Petroquisa Shell Brasil and the Grupo Coimbra Bueno, will begin construction on its petrochemical complex. The investment of Polibrasil in the project is about US$90 million and when industrial operations begin it will produce 50 thousand tons annually of polypropylene, utilizing propylene supplied by Petroquímica União. The construction work is being done by Construtora Dumez and project management and coordination is being handled by Montreal Engenharia S.A., using know-how provided by Shell International.

The Rio Othon Palace Hotel is ready this month, in time for the Asta Convention. The Hotel is located on Copacabana Beach in Rio de Janeiro. There are 609 rooms and suites, as well as a Convention Hall for 700 delegates and various restaurants and bars. There is also a roof-top swimming pool and all the trimmings. Pontual Arquitetos was responsible for the architectural project.

The president of Petrobrás signed in September, in Paris, a loan agreement with a consortium of European banks, headed by Credit Lyonnais. The loan will be paid in eight years and six

(Continued next Page) The Brazilian shipping companies which participated in Nor-Shipping '75 last May in Oslo, Norway, signed contracts for sales totalling US$179.8 million. This figure reaches US$193 million, when the transactions of the Companhia de Comércio e Navegação are considered.

Nor-Shipping good for Brazilian interests

Negotiations involved the order of 25 vessels, to be constructed in Brazilian shipyards for English, German, Greek, Norwegian and Danish buyers.

Besides the immediate results of the negotiations, Brazilian participation in that fair opened doors for future business. The sales effected and the negotiations scheduled for the future were so impressive that the Oslo press noted: "Brazil is participating, this year, for the second time in the Nor-Shipping Fair and it is probably the participant which, up to the present, has obtained the largest contract."

The Brazilian delegation, headed by the Minister of Transportation consisted of representatives of the National Superintendency of the Merchant Marine, the Department of Foreign Trade (CACEX) of the Banco do Brasil, Esabrás, the Banco de Desenvolvimento, Hempel Tintal Marítimas and the shipping companies of CCN, So/Ebin, Ishibrás, Docenave and Frota Oceânica.

Contacts and agreements with Norwegian authorities and firms interested in trade enabled the extension of business in the varied sectors of maritime, air, rail and road transport, as well as the disclosure of the principals and goals of the government plan for economic development in general and the Brazilian maritime transport policy in particular.

The various meetings with Norwegian firms resulted in a visit by them to Brazil, to examine the possibility of supplying equipment for the Brazilian Merchant Marine and the naval industry. They were also interested in associating with Brazilian shipping companies for a transfer of Norwegian technology. Thune Eureka A/A, belonging to the Kvaerner

group, and associated with Santa Matilda, became interested in the production of scuttles and ship equipment, and saw a possibility for the manufacture of electric locomotives in Brazil. Another firm – Asea, of Sweden – showed similar interests and made contacts to produce electric locomotives under a licensing agreement.

In meetings with shipowners and authorities, the Minister of Transportation confirmed that the increase of Brazilian production and of Brazilian foreign trade requires the expansion of Brazil's merchant fleet. He further believes that this growth will benefit other nations, including Norway, which will take advantage of the large volume of transported cargo.

The State of Rio Grande do Sul plans to export beef to the Middle East before the end of this year (the initial transaction would correspond to 60 thousand head) in a deal made through Braspetro.

The president of the Federation of Meat Cooperatives has stated that the transaction will be made within the system presently adopted by the government (exchange of foodstuffs for petroleum), but specific terms are pending further contact with the Arab importers.

The new road for industrial expansion in Brazil leads to the South of Minas Gerais. This was the central theme of a seminar on the decentralization of Brazilian industry, which the State of Minas Gerais held recently in Poços de Caldas. The governor

of the State spoke at one session before over 150 businessmen, most of them from São Paulo, on the economic potential of his state. He pointed to the advantages of a viable infrastructure, fiscal incentives and geographical location, which the State offers to parties interested in investing there.

AUTO PARTS GEAR BOXES. Ciexport, Rua São Luis 182, loja 15, São Paulo, S.P., Brasil. Attention: Mr. William Danielle. Telephone: 256-0505 or 257-2359. TRUCK PARTS. Cobrasma S.A., Rua da Estação 523, Osasco, São Paulo, S.P., Brasil. Cable: COBRASMA. Telex: 021682. BUS, TRUCK, AUTO PARTS. Fábrica Nacional de Motores S.A., (Alfa Romeo Group), Avenida Presidente Vargas 542, Rio de Janeiro, Rio de Janeiro, Brasil. Telephone: 243-1139. AUTO PARTS. Armações de Aço Probel S.A., Rua do Sorocabanos 680, Caixa Postal 30.229, codigo postal 01.000, São Paulo, S.P., Brasil. Attention: Mr. Jean Kroany. Telephone: 63-3121. SHOCK ABSORBERS. Indústria e Comércio Orma Ltda., Rua Anhaia 762, São Paulo, S.P., Brasil. Telephone: 51-6771 or 52-2288. AUTOMOTIVE PARTS FOR LIGHT TRUCKS, pick-up trucks, vans and motor vehicles in general for freight or passenger transport. Toyota do Brasil S.A. Ind. e Com., Estrada Piraporinha, km. 23, São Bernardo do Campo, São Paulo, Brasil. Telephone: 43-3325. Cable: TOYOMOCO. Telex: 023841.

WINE & GRAPE JUICE. Cia. Monaco Vinhedos Ind. Com. Imp. Exp., Rua Saldanha Marinho 783, Bento Gonçalves, Rio Grande do Sul, Brasil. TOMATO PASTE, tropical fruit juices, cashew nuts, sardines, soya meal. Intersales Exportação Ltda., Caixa Postal 16.035, Largo do Machado 29, grupo 501, 20.000 Rio de Janeiro, RJ, Brasil. ASSORTED CANDY. Bela Vista S.A., Rua Canindé 948, 03.033 São Paulo, S.P., Brasil, Telephone: 93-5490. GUARANA EXTRACT, banana sauce, citric oils. Indústrias Reunidas Jaraguá S.A., Caixa Postal D-15, 89250 Jaraguá do Sul, Rio Grande do Sul, Brasil. CASHEW NUTS. Bosschart & Cia. Ltda., Rua do Bom Jesus 172, sala 401, Caixa Postal 1245, Recife, Pernambuco, Brasil, DRIED SEAWEED. Interquim, Comercial Química Ltda., Caixa Postal 1616, São Paulo, S.P., Brasil.

EDIBLES CONCENTRATED GRAPE JUICE. BANTRADE Cia. de Comercio Internacional, Caixa Postal 2562, Porto Alegre, Rio Grande do Sun, Brasil. LIVER PASTE, chicken paste, canned mortadella, canned beef, canned ham, cashew nuts (plain and roasted), cocoa beans, hearts of palm, canned sardines, concentrated grape juice, pepper (white and black). Brasil Export International, Avenida Nilo Peçanha 50, Rio de Janeiro, RJ, Brasil. TROPICAL FRUIT JUICES, honey, hearts of palm, cashew oil, fruit pastes and jellies. MACROMAR Com. e Reprentações Ltda., Caixa Postal 6125, 01033 São Paulo, S.P., Brasil. CASHEW NUTS. Grupo Cidrão Indústria e Comércio de Exportação, Avenida Euzébio Matoso 237, São Paulo, S.P., Brasil. HEARTS OF PALM. Brascan International Exportação e Importação S.A., Caixa Postal 848, Rio de Janeiro, RJ, Brasil. TROPICAL FRUIT. Santa Helena Agrícola Ltda., Avenida Francisco Glicério 329, Conjunto 23, 13.100 Campinas, São Paulo, Brasil. CANNED SARDINES. Inds. Alimentícias Beira Alta Ltda., Avenida Brasil 13.000, Caixa Postal 21064, Rio de Janeiro, RJ Brasil. Attention: Mr. Mario Sergio de Araújo. Cable: HABILTADO. Telephone: 260-2332. SOLUBLE COFFEE. Dominium S.A. Indústria e Comércio, Rua Direita 250, 22° andar, São Paulo, S.P., Brasil.

HARDWARE TAPPING SCREWS. Industrias Micheletto S.A., Caixa Postal 15, 90.000 Porto Alegre, Rio Grande do Sul, Brasil. CARPENTER PLANES. Inds. Emanoel Rocco S.A., Rua Raul Machado 134, Caixa Postal 152, Limeira, Sao Paulo, Brasil. .... LATEX WALL PAINTS. Glausurit do Bra. sil S.A., Caixa Postal 2133, 90.000 Postal 16.337, 02519 Sao Paulo, S.P., Brasil.

WEARABLES JEWELRY. Decio Gouvea Lima, Rua Xavier Toledo 71, São Paulo, S.P., Brasil. SILVER JEWELRY and semi-precious stones. Irmãos Macedo Ltda., Rua Rio de Janeiro 300, sala 1100, Belo Horizonte, Minas Gerais, Brasil. FOOTWEAR for men. Calçados Sãndalo S.A., Avenida Brasil, Franca, São Paulo, Brasil.

BUILDING MATERIALS WOOD. Santa Paula Assessoria e Planejamento, Rua Oito 247, Goiâna, Goiás, Brasil. Telephone: 6-3503 or 2-4704. Attention: Mr. Ivomar de Pádua. WELDING STEEL WIRES. Siderúrgica Fiel Korf S.A., Caixa Postal 196, Via Dutra, km. 326, 12.200 São Jose dos Campos, São Paulo, Brasil. PLASTIC & VINYL GRADE MOULDINGS. Amazonex Industrial Exportadora Ltda., Caixa Postal 138, 66.000 Belém, Pará, Brasil. Attention: Mr. Ovidio Casparetto. LUMBER from the north and south of Brazil. MANASA, Madeira Nacional S.A., Avenida Rudge 752, 01134 São Paulo, S.P., Brasil. PLYWOOD. Indústria e Comércio de Madeiras Dutra Ltda., Rua do Gasômetro 205, São Paulo, S.P., Brasil. LUMBER, veneers, moldings. Companhia de Comércio Exterior, Avenida Rebouças 1373, 0541 São Paulo, S.P., Brasil. FLOOR PANELS, floor blocks, wall panels. Madeira del Pai S.A., Caixa Postal 2886, 80.000 Curitiba, Paraná, Brasil. LUMBER from the Amazon region. Norte Madeiras Importação e Exportação Ltda., Rua Arcipreste Manoel Teodoro 811, Belém, Pará, Brasil LUMBER. Overseas Trading Comércio Exterior S.A., Rua Libero Badaró 425, andar 29, conjuncto 292, São Paulo, S.P., Brasil. CEMENT, iron beams. COBRASPI Ltda., Caixa Postal 22138, Avenida Paulista 2073, andar 7, conjunto 718, São Paulo, S.P., Brasil.

BRAZILIAN GOVERNMENT TRADE BUREAU A Department of the Brazilian Consulate General in New York

551 Fifth Avenue, New York, N. Y. 10017 (212) 682-1055

Information on Brazil can also be obtained from:
Brazilian Embassy, 3006 Massachusetts Ave., N.W., Washington, D. C. 20008

(202) 797-0100
Brazilian Consulate General, 630 Fifth Avenue, New York, N. Y. 10020

(212) 757-3080 Brazilian Consulate, 3400 Montrose Boulevard, Houston, Texas 77006

(713) 526-3941 Brazilian Consulate General, 2 Canal Street, New Orleans, La. 70130

(504) 525-9874 Brazilian Consulate General, 20 N. Wacker Drive, Chicago, III. 60606

(312) 372-2176 Brazilian Consulate General, 5900 Wilshire Blvd., Los Angeles, Calif. 90038

(213) 937-4044 Brazilian Consulate, 100 N. Biscayne Blvd., Miami, Fla. 33132

(305) 377-1734

Page 8

TOOL MACHINES, also agricultural implements. Flecha de Lima Comércio Exterior Ltda., Rua do Seminario 199, andar 10, São Paulo, S.P., Brasil.

FURNITURE. Santa Paula Assessoria Planejamento, Rua Oito 247, Goiâna, Goiás, Brasil. Attention: Mr. Ivomar de Paduá. Telephone: 6-3503 or 2-4704. BARK CLOTH, with handpainted Amazon Indian designs. Richard Melnyk, Caixa Postal 86, Manaus, Amazonas, 69.000 Brasil. CERAMIC TILES. Guainco Pisos Esmaltados Ltda., Rua Gastão Vidigal 15, Caixa Postal 110, 13.840, Mogi Guaçu, São Paulo, Brasil. Telephone: 6-0402. BATHROOM FIXTURES, glazed wall tiles, permanent plumbing fixtures for sanitary use. Marano S.A., Avenida Conde de Boa Vista 121, Recife, Pernambuco, Brasil. Telephone: 22-2422 or 22-2449. WOODEN DECORATIVE HANDICRAFTS. Fantasias do Nordeste Ltda., Caixa Postal 2515, Recife, Pernambuco, Brasil. RUGS. Arno Koppe, Rua Coronel Just. 1.607, 96.800 Santa Cruz do Sul, Rio Grande do Sul, Brasil. HAMMOCKS. Adolfo Rocha & Cia., Avenida XV de novembro, no 50, conjunto 809/11, Rio de Janeiro, Rio de Janeiro, Brasil.

DENIM SLACKS & SUITS. Vilela Vendas Ltda., Avenida Euzébio Matoso 374, São Paulo, S.P., Brasil. WEARING APPAREL for men. Cia. Orly Industrial, Caixa Postal 192, Rua Passos 249, São Paulo, S.P., Brasil. Cable: ORLYH. Telephone: 292-3515 or 93-6591. BIKINIS, also bras. Confecções Francesas Reunida S.A., Alameda Nothmann 708, São Paulo, S.P., Brasil. Attention: Mrs. Giulia Galante. Telephone: 52-6439 or 52-6416. FULL-FASHIONED KNITWEAR in acrylic, polyester and wool. Antonio Alquati & Cia., Rua Ernesto Alves 1436, Caxias do Sul, Rio Grande do Sul, Brasil. LEATHER HANDBAGS. Conimpex Ltda., Comércio Nacional Importação e Exportação Ltda., Avenida Otávio Rocha 134, coniunto 93, Caixa Postal 1377, Porto Alegre, Rio Grande do Sul, Brasil. MEN'S SHIRTS. EMBRACIL, Empresa Brasileira de Comércio Internacional Ltda., Rua Julio de Castilhos 86-701, Copacabana, Rio de Janeiro, 20.000 Brasil. LEATHER HANDBAGS, leather clothing. Protopel Ltda., Rua Santos Dumont 571, Caixa Postal 52, Pelotas 96.100, Rio Grande do Sul, Brasil. COSTUME JEWELRY. Jodicke & Cia. Ltda., Caixa Postal 2395, 30.000 Belo Horizonte, Minas Gerais, Brasil. HOME DECOR NATURAL DRIED FLOWERS in variety of arrangements. Flores Decorativas Ltda., Caixa Postal 55, 32.200 Contagem, Minas Gerais, Brasil. BATHROOM FIXTURES. Cidamar S.A. Indústria e Comércio, Rua Bom Jesus de Pirapora 3383, Caixa Postal 45, Jundiaí, São Paulo, Brasil. Telephone: 2074 or 2075. Telex: 445-3105. Attention: Mr. Miguel May. SYNTHETIC BLANKETS. Oscar Bergren S.A., Rua Alvaro Ribeiro 88, Americana, São Paulo, Brasil. PIANOS. Pianofatura Paulista S.A., Avenida Raimundo de Magalhães 5090, CEP 05092, São Paulo, S.P., Brasil. SILVERPLATED TABLEWARE; wooden ice buckets, trays and salad bowls; complete line of pewter mugs, plates, pitchers and ash-trays. Representações Knudsen Ltda., Rua Teodoro Sampaio 763, loja 3, São Paulo, S.P., Brasil. FURNITURE. ASSISTEXPORT, Exportação de Móveis e Manufaturados de Madeira Ltda., Rua da Consolação 348, 14° andar, São Paulo, S.P., Brasil. BEDS. Indústria e Comércio de Móveis Dircilda Ltda., Rua Regente Feijó 345, Santo André, São Paulo, Brasil. Telephone: 4496499 or 449-6604. FLOOR TILES, mosaic cubes. Cerâmica Chiarelli S.A., Rua Domingos Brunelli 180, Caixa Postal 8687, Mogi-Guaçu, São Paulo, Brasil. Attention: Mr. Oscar Chiarelli. Cable: CHIARELLI. Telephone: 6-0404. FURNITURE, wooden. Aglopar S.A. Madeiras Aglomeradas, Praça Antonio Prado 33, 11° andar, São Paulo, S.P., Brasil. Attention: Mr. Jacques E. Matalon. Telephone: 43-9228 or 37-2226.

TEXTILES POLISHING FELT FOR OPTICALS AND CRYSTALS; felt for the manufacture of tennis balls. Textil Renner Ltda., Caixa Postal 613, 90.000 Pôrto Alegre, Rio Grande do Sul, Brasil. TERGAL, nylon. Indústria e Comércio Nychatex Ltda., Rua Teodoro Campaio 987, São Paulo, S.P., Brasil. Attention: Mr. Simão Isaac. Telephone: 282-7208. COTTON TEXTILES. Conificio Moreno S.A., Rua da União 27, sala 603, 50.000 Recife, Pernambuco, Brasil. SILK, also cotton. Tecelagem de Seda e de Algodão de Pernambuco, Avenida Visconde de Suassuna 393, 50.000 Recife, Pernambuco, Brasil. JUTE, processed, also woven jute fabrics. Cia. Textil de Castanhal, Rua 15 de novembro 226, Belem, Pará, Brasil. Cable: COTEXTIL. Telephone: 1802. KNITTED FABRICS. Grande Tinturaria Paulistana S.A., Rua Restinga 113, Tatuapé, São Paulo, Brasil. Attention: Mr. João Adib Numes. Telephone: 295-0842. WOOL POLYESTER, viscose, pure wool, other textiles for men's clothing. S.A. Moinha Santista, Caixa Postal 507, Rua Boa Vista 150, São Paulo, S.P., Brasil. GREY COTTON SHEETING, cotton yarns, printed cotton, dyed cotton. Textil Brasilminas Ltda., Caixa Postal 965, Rua Bahia 360, andar 9, Belo Horizonte, Minas Gerais, Brasil. RAYON. Fabril Scavone S.A., Rua João Annes 143, São Paulo, S.P., Brasil. KNIT FABRICS. Associação das Malharias do Nordeste do Estado do Rio Grande do Sul, Rua Sinimbu 1912, sala 2, Caxias do Sul, Rio Grande do Sul, Brasil. SISAL YARN, ramie fabrics. IOCHPE TRADE Comércio Internacional S.A., Rua São Bento 365, 10° andar, Caixa Postal 3702, 01.00 São Paulo, S.P., Brasil. Telephone: (011) 32.92.69, 35.76.00, 33,70.72. Telex: 391 11 23.173 IOCH-BR.

STEEL ANGLES, steel flat bars. Perfilados NMF Ind. Com. S.A., Avenida do Contorno 4451, 30.000 Belo Horizonte, Minas Gerais, Brasil. Attention: Mr. Sebastião Franca Drummond. CASTINGS IN DUCTILE OR GRAY IRON, according to SAE or ASTM or DIN standards, weighing up to 110 lbs., custom made, any shape, size or quantity. NOMSA S.A., Avenida Franklin Roosevelt 39, Rio de Janeiro, RJ, Brasil. Cable: LARUPA. Telex: 21/ 22737. CAST IRON BALLS for crushing minerals; used by cement and other industries. NOMASA S.A., Avenida Franklin Roosevelt 39, Rio de Janeiro, RJ, Brasil. Cable: LARUPA, Telex: 21/22737. GRANITES, marbles, quartzites, in blocks and slabs, rough or finished. NOMASA S.A., Avenida Frankline Roosevelt 39, Rio de Janeiro, RJ, Brasil. Cable: LARUPA. Telex: 21/22737. PACKAGING MATERIALS, made of polypropylene, for cereals, chemical products, fertilizers, etc. Cilermando G. Cabral, CATA (Cia. Amazonia Textil de Amiagem), Avenida Bernardo Sayão 138, Belém, Pará, Brasil. INDUSTRIAL GLOVES. CONFIL Confecções Industriais Ltda., Estrada do Brejo 723, Linha do Tiro, Recife, Pernambuco, Brasil. Telephone: 28-3020. INDUSTRIAL WORKING GLOVES & OVERALLS. PROTOPEL Equipamentos de Proteção, Caixa Postal 52, 96.100 Pelotas, Rio Grande do Sul, Brasil. PHOTOELECTRIC LIGHTING CONTROL DEVICES. STIELETRONICA, Avenida Itaóca 2086, ZC 24, Rio de Janeiro, RJ, Brasil. SEAMLESS TUBES for petrochemical and steel industries, centrifugal pumps, structural steel, boilers, aluminum products. COMIEX, Comercial de Imp. e Exp. Ltda., Caixa Postal 1645, Rio de Janeiro, RJ, Brasil.

MISCELLANEOUS SEEDS for trees, especially eucalyptus. Franco-Suissa Importação, Exportação e Representações Ltda., Rua Machado Bittencourt 388, Caixa Postal 2962, São Paulo, S.P., Brasil. WATCH BANDS. Bison Artefatos de Couros Ltda., Rua Caneca 109, 01.307 Paulo, S.P., Brasil. PERCUSSION INSTRUMENTS. Overseas, Caixa Postal 8825, São Paulo, S.P., Brasil. TOOTHPICKS. SB Promoção de Exportação S/C Ltda., Caixa Postal 4694, CEP 0.1000 São Paulo, S.P., Brasil. RAWHIDE DOG CHEWS. TACOLAC Indústrias Químicas Ltda., Rodovia Campinas, Aguas da Prata, Km. 52. Caixa Postal 20, Mogi Mirim, São Paulo, Brasil. AMAZON INDIAN BASKETRY, all sizes. Richard Melnyk, Caixa Postal 86, Manaus, Amazonas, 69.000 Brasil.

ASTA World Travel Congress held in Rio

To further facilitate increased tourism, Embratur is sponsoring the creation of a new hotel infrastructure for Brazil. About 30,000 new hotel rooms have already been added and the number is expected to increase to 75,000.

Zones have been earmarked for tourist development in Brazil and are being regulated to protect the country's ecology and natural beauty. New sites and beaches are being developed to avoid density problems. By escaping a tourist "population crunch", it is expected that Brazil will add a new dimension of pleasure for its visitors.

The 45th ASTA (American Society of Travel Agents) World Travel Congress will be held in Rio de Janeiro from October 26 to 31. The President of Brazil, His Excellency Ernesto Geisel, has accepted an invitation to participate in the opening ceremonies of the Congress on Monday, October 27.

In a communique sent by the Minister of Industry and Commerce to ASTA it was stated that the President's presence at the Congress was further evidence of the importance which Brazil attaches to the meeting. It was called “a priority event for the development of tourism in Brazil ... a week in which media, schools, associations, state and local authorities are being called upon by Brazil's President to help improve the awareness of citizens of the fact that tourism is an important factor in the promotion of the social and economic development of the country." Embratur

Said Farhat, president of EMBRATUR, Brazil's Tourist Authority, has stated the following regarding the ASTA Congress: "I regard the selection of Brazil as the location for ASTA's 45th World Congress, a singular opportunity for us as a nation to show the world through the

eyes of the ASTA travel agent, that we have an abundance of travel experiences for the tourists of the world to see and enjoy. Embratur's total commitment is not unlike what so many other nations have done. It is an important investment in the future ..."

Farhat has also announced plans for the development of a joint tourism program which will get underway immediately following the Congress in Rio.

The creation of a post-Congress tourism development program is new step in ASTA's commitment to Congress site cities. It is a broad effort to create a widescale tourism market.

According to Farhat, the ASTA Congress itself is the first major step in the new program and will create a heightened awareness of Rio and Brazil. It is expected it will be a major catalyst in increasing the number of visitors to Brazil in the upcoming years. It is estimated that the ASTA Congress, which is the largest single annual travel industry event, will attract over 5,000 travel agents and tourism industry leaders from approximately 115 countries to Rio de Janeiro. It is estimated that more than US$4 million is being invested by the Brazilian Government to prepare for the Congress and follow-up programs.

Congress

The ASTA Congress in Rio will include: .... A series of in-depth educational seminars aimed at sharpening an agent's professional skill. Seminars will show agents the latest techniques on management and employee motivation, how to book group travel, how to build a cruise clientele and how to encourage vacation among individuals who never traveled.

. . The widest selection ever offered to registrants of pre-and post-familiarization tours throughout Brazil and South America. .... A 250-booth trade show which was sold out.

The world-renowned Rio Carnival, recreated for delegates, and a variety of entertainment adventures.

The theme of this year's Congress is "Progress through Professionalism". Three mornings of the five-day Congress will be devoted to educational programs.

One of the seminars to be held, "How to Build Cruise Profits”, will be moderated by Hugh Downs, one of America's most well-known television personalities.

Asta

ASTA is the world's largest professional travel trade organization. The Society's purpose is to enhance the professional standards and economic well-being of the travel agency industry and help expand world tourism. Included among its more than 13,000 members are travel agents and tour operators worldwide and Allied Member airlines, steamship companies, railroads, bus lines, car rental firms, hotels, resorts, government tourist offices and other related organizations in over 120 countries.

The International Finance Corp. made its first investment in the Northeast of Brazil with a US$10 million loan for a new US$65 million, 52,500 mtpy expandable ethylene oxide and glycol plant, to be built by Oxiteno do Nordeste as an integral plant of the Camaçari petrochemical complex in Bahia. Halson International is involved as a minority shareholder, and the Eximbank has granted a US$5.4 million loan to the project.

Oxiteno do Nordeste's output will be used principally in the production of polyester.

Brazilian petroleum imports will increase by 1.5% this year, totalling US$3.2 billion. Studies for oil discovery in Brazil in 1976 will have a backing in the order of CR$18 billion, as opposed to the CR$11 billion applied this year. Next year Petrobrás should drill 322 oil wells. By December the firm will have drilled a total of 253 wells in 1975.

The 9 partners in the Brazilian firm, Mineração Rio do Norte, have revised their contract for mining the Trombetas bauxite deposit. They have pushed the production goal up to 8 million mtpy, from the 3.35 million originally envisioned. Cia. Vale do Rio Doce and Cia. Brasileira de Aluminio, which together hold 51% of the stock, will now take 3.4 million mtpy, Alcan will double its take to 2.4 million, and each of the other six partners will take 350,000 mtpy. The cost of the project has escalated to an estimated US$480 million from the US$170 million forecast 14 months ago.

Brazilian-based companies will now get a tax break for exporting "knowhow". The Brazilian Minister of Finance, who announced the government measure in early September, said the tax relief legislation was designed to encourage the expansion of Brazilian service exports.

Brazilian subsidiaries of foreign-based companies qualify for the incentives, aimed at easing Brazil's trade deficit

. The fiscal incentives, similar to tax breaks offered to exporters of raw materials and manufactured products, will allow profits from exported "services" to be exempt from Brazilian taxes.

The Brazilian Government plans to spend about US$150 million over the next five years on 18 large-scale flood control and land reclamation programs in 13 states. These will involve the construction of dams, dredging and straightening of rivers and erosion protection works. The main cities under threat of periodic and frequently disastrous flooding are Recife, Porto Alegre, Santarem, Tubarão, Campo Grande, Curitiba, Goiania and parts of Rio. The land drainage projects should bring 50,000 hectares of fertile valley land into agricultural use in two programs near Rio. Another 30,000 hectares will be reclaimed in the Rio Sapucai Valley in the south of Minas Gerais.

In a separate project, São Paulo is to canalize 40 km of rivers and streams every year until 1985 and mount a permanent dredging operation on the Rio Tiete. At the moment, only 82 km of São Paulo's 460 km of rivers are canalized.

The Minister of Mines and Energy recently confirmed the discovery of two large uranium reserves in the State of Goiás, in the municipalities of Amorinópolis and Campos Belos, at 400 and 300 km. distance respectively from Brasília. It has been estimated that the new uraniferous sites, showing a uranium oxide content of between 12 and 5%, could double the present Brazilian reserves, of about 11 thousand tons. Uranium research in Brazil in 1975 is being backed by resources in the order of US$15 million.

A financing contract for a total of US$150 million was signed recently in London for the "Railway of Steel", which will hook up Belo Horizonte and Ipatinga. The loan, one of the largest received by Brazil in the last few months, was negotiated by the Banco do Brasil together with 57 international banks.

Up to July of this year, Brazilian ex: ports totalled US$4.9 billion, against a

, total of US$3.7 billion in the same period

(Continued on Page 8

The Brazilian Government has approved a special program for the control of erosion of urban soil in the State of Paraná, with resources, in the 1975/79 period of CR$1.7 billion. It also approved the National Program of Agricultural

The State of São Paulo has announced an US$850 million water and sanitation

Brazil will reduce its balance of trade deficit

The Brazilian Minister of Planning stated recently that the Government foresees a reduction in the balance of trade deficit to a little less than US$3 billion, after 1976. It intends to maintain the rhythm of economic growth and stimulate those sectors which can act as "engines of the economy", or rather, which are performing well, like construction, metallurgy, mechanics and non-metallic minerals.

Referring to the decree which establishes restrictions on government imports, the Planning Minister explained that, while the restrictions are already in existence, they are not yet formalized. "As of now, each ministry will have to reduce its imports by 15%. In 1975, according to surveys already done, government imports will reach close to US$5.5 billion, including petroleum with more than US$3 billion. The 15% cut-back is intended for government imports other than petroleum."

"In compensation," he concluded, “since we are reducing imports, CR$10 billion was set aside in 1976 for the financing of government organs to continue their expansion programs with that level of investment that each hopes to maintain and to fit these programs into the policy of import substitution."

Brazil still attracts foreign capital

the European firms, show resources in the order of US$4.6 billion by 1979.

Despite the recent decline in the rates of economic recovery of the developed countries, in large part motivated by the high price of petroleum, Brazil continues to attract a steady flow of foreign investment. This fact was confirmed by sources of Brazil's Ministry of Planning, soon after a meeting between the Planning Minister and directors of the Swiss firm Brow-Boveri, which has expressed interest in increasing its investments in Brazil.

The Minister of Planning had also met with a group of directors from the Republic National Bank of Dallas, Texas, who are interested in financing the purchase of Brazilian products by North American firms.

Exports Will Grow

Other government sources indicated in Rio that the objective of the government is to reduce the deficit of US$3 to 3.5 billion, foreseen for this year, to a maximum of US$1.5 billion. With the new restrictions, these sources say, imports should be maintained at about US$12.5 billion, for the third consecutive year, while exports, due to new incentives and credit mechanisms, could arrive at US$11 billion, with a growth rate of about 20%.

New indexes for import aliquots for products considered superfluous have been established and the list of intermediary products which will have their aliquots raised by 30 points (more than 900) has been increased. The government is certain, however, that they will be kept within the limits established by the international trade agreements.

Demand

According to the Ministry of Planning, the areas in Brazil in which the greatest demand has occurred for foreign investment are those of mining and metallurgy (aluminum, bauxite, iron ore, steel, zinc, copper); chemicals and petrochemical; paper and cellulose; machinery and equipment (particularly equipment for hydroelectric, steel, petroleum, nuclear energy and mining sectors).

A review of the inquiries made to the Ministry of Planning by foreign investors, shows that there is less interest in majority participation than in "jointventures" and the support which the government has given to this type of association.

In addition, official sources indicate that the levels of reinvestment of the foreign firms already installed in Brazil and their plans for expansion, especially

Outflow

In recent months there has been a debate as to which system is best for the outflow of Brazilian production interior waterways or rail.

Those who defend the waterway theory point to fuel economy and very low transport costs as support of their theory. They have conceded that due to the irregular formations of the majority of Brazil's rivers investment will be necessary, but it is much lower than that of the railroad investments.

For the Minister of Planning the whole problem lies in the course of the Brazilian rivers and he has pointed out: "In Europe, the rivers are in the right places and run in the right directions. In Brazil, we do not have, for example, a river which connects São Paulo to Rio Grande do Sul."

He has stated that the investment for the installation of a river transport system is very high, but that the maintenance cost is much lower than that of the railroads.

However, in the case of the railroads there exist options in the sense that the level of investments can be adapted to the transport flow, which is not the case with the waterways. All that is needed in some areas is unpaved roadway or lightly asphalted passes. In terms of pavement there are at least three different categories where investments vary greatly. The Minister does admit, however, that "in some areas, water transport justifies the implantation of a program."

Imports Drop

While an overall import of about US$12.5 billion is predicted, government technicians admit that a relative drop is still possible this year, even though a

Page 9

Four products lead Brazil's export schedule

Four products accounted for more than 50% of the overall export receipts of Brazil in the first nine months of this year. Sugar, soybean, iron ore and coffee exports represented US$3,343 million, of a total US$6,585 million sold abroad during this period.

These figures are mentioned in a statistical report released by CACEX last month, which confirmed that the sales abroad in the month of September had reached US$769.7 million. This total is a drop of about 10% in relation to the same month of last year. But the cumulative results from January to September showed a growth of 22.57% in relation to the first nine months of 1974.

The CACEX report showed that the export of primary products represented close to 60% of the total, with US$3,882 million, demonstrating an increase of 31.47% in relation to the results obtained in the same period of last year. Industrialized products totalled US$2,545 million (an increase of 11.93%): semi - manufactures reached US$652.6 million (a drop of 0.19%), while the manufactures totalled US$1,892 million(a growth of 16.82%).

Soybean exports show increase

Soybean exports (grain, bran and oil) took the lead on the export schedule, with US$1,007 million, passing up sugar (brown, crystal and refined), which moved to second place with US$984.4 million. Coffee (beans and soluble) maintained the third spot, with US$698.6 million, followed by iron ore, which totalled US$652.1 million.

Automobile sales surpassed the US$222 million mark, staying in fifth place on the export list. Cocoa beans placed in sixth place, with US$158.3 million. If cocoa butter is considered, this total advances to US$201.2 million. The performance of exports of machinery, furnaces, equipment and mechanical instruments was also good, reaching a total of US$179.3 million.

Corn (grain), with US$114.2 million, and tobacco leaves with US$111.6 million, were also considered favorable by the technicians of the sector. Both, however, were surpassed by footwear which totalled US$120.9 million, showing a growth of 27% in relations to the first nine months of last year.

Among the 29 principal primary products listed by CACEX, twelve showed

Brazil, which is the second largest world producer of soybean after the United States, should register a notable production increase in 1976, according to information from the United States Department of Agriculture.

The Department estimates that Brazil's soybean crop in 1976 will be in the order of 11.5 million tons.

Exports will also have an unprecedented increase, arriving at 5 million tons next year.

The Department of Agriculture has stated that exports of soy oil will increase about 50 thousand tons in 1976 and will register 300 thousand tons.

The exports of soy meal will increase by 350 thousand tons and will register 3.4 million tons.

A report from the Department of Agriculture states that soybeans production in Brazil registered the following pattern as of 1972. Export figures have been placed in parentheses.

1972: 3,660,000 tons (1,020,000) 1975: 9,600,000 tons (4,000,000) 1973: 5,000,000 tons (1,970,000) 1976: 11,500,000 tons (5,000,000) 1974: 7,550,000 tons (2,860,000)

Page 10

During the first half of this year the National Bank for Economic Development (BNDE) and its subsidiary, the Special Agency for Industrial Financing (FINAME), effected CR$11,725 million, or the equivalent of about US$1,500 million, in financing operations, which represented a nominal growth of 102.1% in relation to the previous semester, and CR$10,355 million, or about US$1,300 million, in disbursements, corresponding to an increase of 186.1% over the second half of 1974.

Taking into consideration the large projects, the BNDE investments indicate the priority given to the sectors for basic input, equipment and encouraging Brazilian private enterprise.

The Port of Aratu, 40 kilometers from Salvador, should go into operation in February 1976. Initially planned to attend only to the port needs of the Aratu Industrial Center and surplus mineral dimensions with the implantation of the production, the port has now gained new petrochemical pole of Camaçari.

With investments scheduled for CR$530 million, the Aratu port should be the most modern and well-equipped in Brazil.

In a general assembly which took place last month, the Banco do Brasil doubled its capital, which passed from CR$5,760 million to CR$11,520 million, through the issue of 5,670 million new stock shares, in the nominal value of one cruzeiro each. These shares will be distributed to Bank stockholders, free of any fiscal charge, in a number equivalent to that which each on has in actual capital.

The value of the agricultural product of the Central-South region experienced a real growth of 3.1% in the 1974/75 crop. In fiscal terms, the production grew less than 2%, according to preliminary statistics released by the Institute of Agricultural Economy of São Paulo. The nine states of the CentralSouth region represent approximately 75% of the national agricultural production.

The gross value of the production was estimated at a little less than CR$100 billion, of which 24.5% comes from São

The Banco do Brasil has approved the formation of the Fund for Incentives to Techno-Scientific Research, whose resources will correspond to 2% of the net profit of the Bank. The Fund will give stimulus and support to scientific and technological research, in areas defined as priorities by the federal government and specialized state or private organs. Its operational approach will be defined by regulation to be approved by the Banco do Brasil.

Volta Redonda Steel Plant gets additional financing

The Companhia Siderurgica Nacional (National Steel Company-CSN) has obtained financing in the order of CR$528.2 million from the Banco Nacional de Desenvolvimento Econômico (National Economic Development Bank-BNDE), for the second stage of the expansion project of the Volta Redonda Steel Plant, which should be completed in the first half of next year. At that time the plant's installed steel production capacity will be elevated from 1.7 to 2.5 million tons per year. The

the Fund for Economic Refurbishing Brazil is eighth on list

(FRE)

BNDE support to the CSN expansion program will permit the incorporation of an elevated level of technology in the steel complex at Volta Redonda. Among the advances is a blast furnace (no. 3) with a capacity for 7 thousand tons/day (one of the twelve largest in the world). with devices which will combine to minimize the consumption of coke and reduce the operational costs in the production of pig iron. The new equipment will also attend to the necessities of the third stage of the steel mill's expansion, which in 1979 should have an installed capacity of about 4.6 million tons/year.

Brazil is in eighth place on a list of the 100 principal economic entities countries and companies – prepared by the Committee on Foreign Affairs of the United States Senate. Che multinational firms constitute 57 slots on the list, 30 of which are North American-based firms. The first company is General Motors, which appears in 16th place in the general classification.

Besides Brazil, there are only six other Latin American countries on the list of 100: Mexico (14th place), Argentina (16th) Venezuela (28th), Colombia (34th), Chile (52nd) and Peru (54th).

There are no companies in the first 10 spots, which are all occupied by countries or groups of nations. They are as follows: United States, Japan, West Germany, France, Great Britain, Italy, Canada, Brazil, India and Spain.

The eight principal companies are: General Motors (automobiles), Exxon (petroleum), Ford (automobiles), Royal Dutch Shell (petroleum); General Electric (electronics and heavy equipment), Mobil Oil (petroleum), Unilever (detergents, cosmetics, hygienic products, food products), and Texaco (petroleum).

AUTO BODIES. Marcopolo S.A. Carrocerias e Onibus, Rua Marcopolo 280, Caixa Postal 238, Caxias do Sul, Rio Grande do Sul, Brasil.

AUTO PARTS, also agricultural machines. Marcel Blum Importação, Exportação e Representações Ltda., Rua Dr. Vila Nova 44, Vila Buarque, Caixa Postal 6429, São Paulo, Brasil. Cable: BLUMFILS.

AGRICULTURAL NEEDS AGRICULTURAL MACHINERY, including rice decorticator and forrage grinding machine for sugarcane and any type of green grass. CREMASCO, Guido Atilio Cremasco & Filho, Avenida Ipiranga 344 (Edificio Itália), 10° andar, conjunto 101-E, São Paulo, São Paulo, Brasil. Telephone: 257-3756 or 257-0030. Telegram: CREMASCO. AGRICULTURAL EQUIPMENT. Flecha de Lima, Comércio Exterior Ltda., Rua do Seminario 199, 10° andar, cjs. 103/4, 01000 São Paulo, S.P., Brasil. Telephone: 34-0467 or 32-1362. Telex: (011) 22624.

CAR RADIOS. Indústria Eletronica Itamarason, Rua Amador Bueno 159/163, Ribeirão Preto, São Paulo, S.P., Brasil.

AUTOS, TRUCKS, motors, auto parts. Agripec Comércio e Indústria Ltda., Rua Dr. João Inácio 556, Caixa Postal 1692, 90.000 Porto Alegre, Rio Grande do Sul, Brasil.

GEAR for gear boxes. Motogear S.A. Indústria de Engrenagens, Rua Guaipá 729, Vila Leopoldina, Caixa Postal 11.514, São Paulo, S.P., Brasil. Telephone: 260-9c06, 260-8907 or 262-0756. Attention: Sergio Grostein.

ANNOUNCEMENTS COMPANY offers complete assistance for executives on business trips to Brazil (offices, bi-lingual secretaries, interpreters), and services as buying agents. EMESSE S.A., Avenida Paulista 1159, sala 1210, 01311 São Paulo, S.P., Brasil. (Telephone: 289-2118) and 12 Timber Lane, Westport, Conn. 06880. (Telephone: (212) 582-9119). BRAZILIAN COMPANY involved in processing and marketing of woods seeks American group interested in a joint-venture. Hemitrade S.A. Exportação, e Importação, Rua da Quitanda 71/75, Caixa Postal 2366, Rio de Janeiro, RJ, Brasil. BRAZILIAN FIRM seeks representative for semi-precious stones. EMPEL, Empreendimentos e Representações Ltda., Rua da Alfândega 111-A, sala 408, Rio de Janeiro, RJ, Brasil. BRAZILIAN PRODUCER of VW auto parts wishes to contact representative in New York and Chicago. IMPORPARTS, Importação e Exportação Ltda., Rua Dr. Mario Ferraz 240, 01453 São Paulo, Brasil. BRAZILIAN FIRM offers services as representative for national and foreign firms. Incentiva Comércio, Importação e Exportação Ltda., Rua Frei Caneca 1407, 8o andar, conj. 818, São Paulo, S.P., Brasil. BRAZILIAN PRODUCER of three-phase asynchronous Squirrel-cage Induction motors (Type IP-44-ABNT) seeks representative in the United States for the sale of its product. Eletromotores Jaraguá S.A., Rua Venâncio da Silva Porto 399, Caixa Postal D-20, 89.250 Jaraguá do Sul, Santa Catarina, Brasil. EXPERIENCED airline sales executive, with proven track record in USA, fluent in Portuguese and English, seeks new challenges in travel and/or hospitality services areas. Will also consider other business opportunities. Contact: Anthony M. Botelho, 185 Bergen Street, Somerset, New Jersey 08873. Telephone: (201) 828-2024. ASSISTANCE TO EXECUTIVES IN BRAZIL. Office offers all facilities for people on business trips. (Services by day, week or month; bi-lingual staff, messenger service, interpreters; general guidance to living and working in São Paulo). Great Start Ltda., Caixa Postal 6038, Praça da Republica 177, conjunto 111, São Paulo, S.P., Brasil. Telephone: 34-3245. Cable: Greatstart, S.P., S.P., Brasil. TRADING COMPANY OFFERS variety of products. Contact: V. M. Vendas Marketing and Trading S.A., Alameda Nothmann 611, 01216 São Paulo, S.P., Brasil. BRAZILIAN FIRM offers services as buying agent in Brazil. Quasar Administração, Planejamento e Representações Ltda., Rua 5 de julho 98, 04281 São Paulo, S.P., Brasil.

AUTO PARTS SHOCK ABSORBERS, accessories for VW, mufflers for any type of car. STILL S.A., Sociedade Técnica de Instalações Industriais, Praça da República 497, 1° andar, Caixa Postal 01045, São Paulo, S.P., Brasil. AUTO PARTS, CIP, Companhia Industrial de Peças, Avenida Monteiro Lobato 2397, Caixa Postal 153, 07000, Guarulhos, São Paulo, Brasil. DIESEL MOTORS. Cia. Yamar Distribuidora de Máquinas, Caixa Postal 542, São Paulo, S.P., Brasil DISC BRAKE PADS, auto parts and accessories. Brasil Trading Exporting Ltda., Rua Senador Dantas 45B, Grupo 4401, ZC-06, Rio de Janeiro, Rio de Janeiro, Brasil.

BUILDING MATERIALS K.D. PARANA PINE MOULDINGS: bases, casings, bed and cabinet moulds, coves, crowns, lattices, outside corners, quarter rounds, shoes, screen moulds, stops, window stools and door jambs, all proper kiln dried, neatly millworked on modern and precise moulders. Competitive prices. Shipments either in wooden, well-protected, seaworthy cases or in containers. Quick delivery. Iochpe Trade Comércio Internacional S.A., Caixa Postal 1870, 90.000 Porto Alegre, Rio Grande do Sul, Brasil.

BRAZILIAN GOVERNMENT TRADE BUREAU A Department of the Brazilian Consulate General in New York

551 Fifth Avenue, New York, N. Y. 10017 (212) 682-1055

Information on Brazil can also be obtained from:
Brazilian Embassy, 3006 Massachusetts Ave., N.W., Washington, D. C. 20008

(202) 797-0100
Brazilian Consulate General, 630 Fifth Avenue, New York, N. Y. 10020

(212) 757-3080 Brazilian Consulate, 3400 Montrose Boulevard, Houston, Texas 77006

(713) 526-3941 Brazilian Consulate General, 2 Canal Street, New Orleans, La. 70130

(504) 525-9874 Brazilian Consulate General, 20 N. Wacker Drive, Chicago, III. 60606

(312) 372-2176 Brazilian Consulate General, 5900 Wilshire Blvd., Los Angeles, Calif. 90038

(213) 937-4044 Brazilian Consulate, 100 N. Biscayne Blvd., Miami, Fla. 33132

(305) 377-1734

NAILS & TACKS. USM do Brasil S.A. Indústria e Comércio, Caixa Postal 953, São Paulo, S.P., Brasil. HARDWARE for furniture, for rolling window shades, for iron aluminum and wooden molding. Metalúrgica Soprano Ltda., Caixa Postal 167, 95.100 Caxais do Sul, Rio Grande do Sul, Brasil. LATEX WALL PAINTS. Glausurit do Brasil S.A., Caixa Postal 340, São Bernardo do Campo, S.P., Brasil. LOCKS, doorknobs, mirrors. Michael S. Keenawn Representações Ltda., Rua Afonso Celso 552, Caixa Postal 9143, São Paulo, S.P., Brasil. FASTENING TOOLS. Mecanica Walsywa Ltda., Avenida Casa Verde 449/455, Caixa Postal 16.337, 02519 São Paulo, S.P., Brasil.

INDUSTRIAL NEEDS PIG IRON, ferro silicon, ferro managnese wire rods (SAE 1010/1045, 5.5 at 12.7 MM), steel rod bars (of 3/8" at 1" SAE 1010/1050), alloy steel, steel wires, cast iron tubes and pipes (2" at 24"), special steel, iron for construction. PROMEX, Promotora de Exportação Ltda., Caixa Postal 2334, Porto Alegre, Brasil. Telephone: 246450. HYDROGENATED CASTOR OIL; distilled, dehydrated castor oil fatty acid, recinoleic acid, estearic acid. Socinol Indústria e Comércio Ltda., Rua Ferreira Penteado 709, 2° andar, Caixa Postal 120, Campinas, São Paulo, Brasil. PIG IRON. Markup Consultores Associados, Rua Ministro Gabriel R. Passos 465, Moema, São Paulo, S.P., Brasil. Telex: (011) 21189. TIN in 99.8% bars, cassiterite of 70 to 75% content, titanium, rutile, chromite. Indústria Santos Silva Minérios e Estanho Ltda., Caixa Postal 1018, Rua Gaspar Viana 211, 66.000 Belém, Pará, Brasil.

LUMBER. IREL, Indústrias Reunidas Estrela Ltda., Redenção, Distrito de Conceição do Araguaia, Estado do Pará, Brasil. Also: Rua Carmo Neto 173/175, Rio de Janeiro, Rio de Janeiro, Brasil. Telephone: 252-3281. WOODEN MOULDINGS for doors and windows; also, furniture. Couto & Irmãos Ltda., Rua Dr. Cesar 334, São Paulo, S.P., Brasil. Telephone: 298-2992. EDIBLES CANNED HEARTS OF PALM. Still S.A., Sociedade Técnica de Instalações Industriais, Praça da República 497, 1° andar, Caixa Postal 01045, São Paulo, S.P., Brasil. BLACK PEPPER, Brazil nut. Socita, Sociedade Intercontinental Imp. Exp. Ltda., Caixa Postal 1973, ZCOO, Rio de Janeiro, RJ, Brasil. Cable: SHIBAKO. FROZEN FISH, hearts of palm. CONFRIO, Companhia Nacional de Frigoríficos, Rua José Bonifacio 176-12, São Paulo, S.P., Brasil. CASHEW NUTS. OBRACI Ltda, Rua Constança Barbosa 215, Sala 301, Rio de Janeiro, RJ, Brasil. HEARTS OF PALM, canned. SERVITRADE S/C, Avenida São Luiz 258, 20° andar, São Paulo, S.P., Brasil. Cable: SERVITRADE. Telephone: PBX 257-9633. SOYBEAN. Fasko S.A. Exportação, Avenida Presidente Vargas 583, SS 1308/10, Caixa Postal 4654, Rio de Janeiro, RJ, Brasil. SOYBEAN. Socomin Soc. de Com. e Ind. Ltda., Avenida Graça Aranha 19, GH. 1102, Caixa Postal 387, ZC-00, Rio de Janeiro, RJ, Brasil. CANNED FRUIT & VEGETABLES. Aguape S.A. Indústria da Alimentação, Avenida Saldado Filho 641, Caixa Postal 543, Pelotas, Rio Grande do Sul, Brasil. Cable: AGAPE. CANNED SARDINES, canned hearts of palm. Alfonso, Alvaro S/C Ltda., Caixa Postal 18, Mogi-Mirim, São Paulo, Brasil. HEARTS OF PALM. Prince Indústria e Comércio Ltda., Avenida Rio Branco 37, grupo 602, 20.000 Rio de Janeiro, Rio de Janeiro, Brasil. HARDWARE TOOL HANDLES, plywood, plywood doors, railroad ties, panelling, floor blocks. Sibisa Sirotsky Birmann S.A., Indústria e Comércio Rua Siqueira Campos 1194, 2° andar, Caixa Postal 2.133, CEP 90.000, Porto Alegre, Rio Grande do Sul, Brasil. Telephone: 24-2055. Telex: (051) 1184. PAINT BRUSH HANDLES. Irmãos lochpe S.A., Indústria e Exportação, Caixa Postal 1870, 90.000 Porto Alegre, Rio Grande do Sul, Brasil. VALVES for piping, boilers, vats and the like, including pressure reducing valves; also, faucets, taps and stopcocks. Fligor S.A. Ind. de Válvulas e Componentes para Refrigeração, Rua Fernandes Moreira 1293, Santo Amaro, São Paulo, Caixa Postal 1642, SP-1, Brasil. Telephone: 61-1568 or 267-4268.

HOME DECOR UPRIGHT PIANOS. Pianofatura Paulista S.A., Avenida Raimundo Pereira de Magalhães 5028, Caixa Postal 3428, São Paulo, S.P., Brasil. Cable: PIANOFATURA. BATHROOM TOWELS. Desina Exportadores e Importadores Ltda., Rua Cinderela 25, Caixa Postal 30641, São Paulo, S.P., Brasil. Cable: BUSINESS, São Paulo. LIGHTING FIXTURES. Osram do Brasil, Companhia de Lampadas Elétricas, Caixa Postal 2997, São Paulo, S.P., Brasil. ORNAMENTAL FLOWERS. Caetano Nascimento Mascarenhas, Caixa Postal 725, Avenida Amazonas 8400, Belo Horizonte, Minas Gerais, Brasil. Telephone: 33-0026. BATHROOM FIIXTURES. Cidamar S.A. Indústria e Comércio, Rua Bom Jesus de pirapora 3383, Caixa Postal 45, Jundiai, São Paulo, Brasil. Telephone: 2074 or 2075. Telex: 445.3105. Attention: Mr. Miguel May. IMITATION ANTIQUE CLOCKS, alarm clocks. CONEXPRO Agência de Comércio Exterior Ltda., Caixa Postal 7441, 80.000 Curitiba, Parana, Brasil. BEDS. Indústria e Comércio de Móveis Dircilda Ltda., Rua Reente Feijo 345, Santo André, São Paulo, Brasil. Telephone: 4496499 or 449-6604.

WEARABLES LEATHER SPORTS SHOES. Copela Trading Company, 307 Fifth Avenue, New York, N.Y. 10016. LINGERIE. OBRACI Ltda., Rua Constança Barbosa 215, Sala 301, Rio de Janeiro, Rio de Janeiro, Brasil. LEATHER HANDBAGS, leather belts, men's, women's and children's shoes. MAMEDE Calçados e Artefatos de Couro Ltda., Rua General Osório 2316, Franca, São Paulo, Brasil. PROFESSIONAL UNIFORMS, industrial gloves. Arcal S.A. Indústria do Vestuário, Caixa Postal 207, Distrito Industrial Dona Carlota, CEP 968000, Santa Cruz do Sul, Rio Grande do Sul, Brasil. Cable: ARCAL. MEN'S FOOTWEAR. Calçados Sandalo S.A., Avenida Brasil, Franca, São Paulo, Brasil. DENIM JACKETS & SLACKS. Grupo Cidrão Indústria e Comércio de Exportação, Avenida Euzébio Matoso 237, São Paulo, S.P., Brasil. MEN'S & WOMEN'S LEATHER JACKETS. EMBRACIL, Empresa Brasileira de Comércio Internacional Ltda., Rua do Riachuelo 42, sala 1005, Rio de Janeiro, Rio de Janeiro, Brasil. CLOTHING, footwear. Soma, Escritórios Reunidos Ltda., Caixa Postal 723, Rua Guilherme Rocha 381, conjunto 512, Fortaleza, Ceará, Brasil. LEATHER BELTS, metal buckles and ladies' handbags. Netinho Ltda., Rua Javáes 202, Bom Retiro, São Paulo, Brasil. MEN'S FOOTFEAR. Calçados Terra S.A., Caixa Postal 163, 14.400 Franca, São Paulo, Brasil. COSTUME JEWELRY, in silver and semiprecious stones, with zodiac signs, charms, birds, etc. Eduardo-Joalheiro, Avenida Afonso Pena 748, Sala 1211, Belo Horizonte, Minas Gerais, Brasil.

BATHROOM CABINETS and framed mirrors. Antonio de Paula, Rua Guaranésia 314, apt. 31, 30.000 Belo Horizonte, Minas Gerais, Brasil.

FLOOR TILES. Cerâmica Chiarelli S.A., Rua Domingos Brunelli 180, Caixa Postal 8667, Mogi-Guaçu, São Paulo, Brasli. Atteniton: Mr. Oscar Chiarelli. Cable: CHIARELLI. Telephone: 6-0404. BATHROOM FIXTURES, glazed wall tiles, permanent plumbing fixtures for sanitary or hygenic use. Marano S.A., Avenida Conde de Boa Vista 121, Recife, Pernambuco, Brasil. Telephone: 22-2422 or 22-2449. BEDROOM FURNITURE. Sena Group International, 103 Park Avenue, Room 1110, New York, New York 10017.

Usiminas Signs with Midrex

Brazil and France Sign accords

Usinas Siderurgicas de Minas Gerais S.A. (Usiminas) of Belo Horizonte, Brazil, has signed a letter of intent covering a series of agreements with Midrex Corp., including a construction contract for two 400,000 mtpy modules using the Midrex direct reduction process.

To be constructed at Ipatinga, the two modules will substitute coke oven gas for natural gas in processing. Operation of the direct reduction facility is expected to begin in 1978, when phase three of the Usiminas expansion plan is complete.

The Usiminas application of the Midrex process will be the first commercial installation of its kind in the world, cording to Midrex spokesman. The concept represents an important advancement for direct reduction technology, especially in countries where there is a shortage of metallurgical coal or where coke oven gas can be diverted for use in direct reduction, he added.

Concern over the Brazilian energy crisis was expressed by Usiminas president Amaro Lanari Jr. eight months ago, at the inauguration of the company's No. 3-blast furnace. At that time, Lanari said Usiminas was studying the feasibility of using direct reduction in integrated steel mills, to save metallurgical coal through more effective use of coke oven and blast furnace gases.

Usiminas will use the highly metalized Midrex iron in blast furnaces and LD converters for the production of high quality steel products. The use of Midrex iron will enable Usiminas to increase steel production by as much as

20%, and to save around US$50 million per year in metallurgical coal consumption, Midrex reported.

Under the agreement, Midrex will provide Usiminas with engineering, plant equipment, and personnel to supervise erection, startup, and training of Usiminas employees. Technology for using coke oven gas in the Midrex process will be applied at Usiminas plants in a joint undertaking by the two companies. Use of Midrex iron in the blast furnace will be a part of this collaboration. The technology developed will be refined and made available to other steel plants in Brazil and throughout the world.

Prior to the agreement, Usiminas had conducted two years of studies and test programs and Midrex has been actively researching alternate fuel applications for some years, Midrex said.

The Brazilian Minister of Foreign Affairs Azeredo da Silveira and his French counterpart Jean Sauvagnargues have signed two accords, one creating a commission for the expansion of bilateral relations and the other implementing a mechanism for the acceleration of maritime transport between the two countries, in anticipation of an increase in the trade between them.

This was accomplished during the recent official visit of Minister Azeredo da Silveira to France.

Concerning the accord made recently between Brazil and France for nuclear cooperation, Azeredo da Silveira said that Brazil is interested in equipping its Merchant Marine with nuclear powered engines, using technology already utilized in France in some vessels. "Uranium will be the prevailing fuel within ten years and we cannot be left behind," the Minister stated.

He added that the agreement does not only call for the import of equipment, but also for the "import of technology” for the production of centers and reactors in the national territory."

Chemical Bank, the sixth largest bank in the United States has joined with Banco Noroeste de Estado de São Paulo to form an investment bank, Banco Noroeste de Investimento S.A. Chemical Bank has branches, subsidiaries, affiliates and representative offices throughout the world. The bank has maintained a representative office in Rio de Janeiro since 1967 and added a second office in São Paulo in 1971. Last year Chemical Bank celebrated its 150th anniversary.

Banco Noroeste was founded over 50 years ago and is one of the ten largest private commercial banks in Brazil. It has 86 branches in the States of São Paulo and Rio de Janeiro and in Panama. The bank is the leading company in a group which includes a consumer finance company, a securities brokerage firm, a collection and financing agent and a leasing company – the latter a joint venture with Chemical Bank.

The new joint venture investment bank will offer a range of services such as: short and medium term working capital loans, fixed asset financing, government incentive program loans, foreign currency loans, Eximbank financing, equipment leasing, project analysis, money market operations, time deposits.

Banco Noroeste de Investimento S.A. is located at Rua Alvares Penteado 216, São Paulo. (Telephone: 239-0844).

Other products which will open the way for cooperative agreements at a medium term are railway equipment, steel industry equipment and equipment for solar energy use. The Brazilian minister also pointed to the cooperation in the sector of port equipment, the supply of hydroelectric turbines for the plants of Tucurui and Boa Esperança Indústria Mecânica, provisions for assistence to air traffic and questions related to Brazilian regional development (projects in the Amazon and the Northeast, in accord with the Second National Development Plan).

Joint Venture

National Starch & Chemical Corporation has formed a joint venture with Companhia Lorenz of Brazil to produce and sell corn and tapioca-based starches. The joint venture, Lorenz-National Industrial Ltda., is located in Blumenau, in the southern state of Santa Catarina.

Donald Pascal, chairman of the board of National Starch & Chemical Corporation, said: “We are very optimistic about the future of this new association. Production of corn-based specialty starches is expected to begin within the month."

Companhia Lorenz produces starch, dextrins and drum-dried products from tapioca.

National Starch is a leading manufacturer of starches, adhesives, chemicals and related products.

Regarding the tightening of trade relations between the two countries, Azeredo da Silveira gave special emphasis to the French mission of 60 entrepreneurs and bankers which left at the end of October for Brazil, under the directorship of the head of the French Ministry of Foreign Trade, Norbert Segard. The interest that the mission created among local businessmen was so great that there were over 200 candidates for the mission from which to choose.

1975 was an important year for Brazil's economy. By removing anomalies, stimulating free enterprise and bringing order and coherence to various sectors of economic activity, Brazilian authorities reaffirmed the Federal Government's interest in accelerating the development of the country by means of parallel and simultaneous measures. Most of them provide the private sector with the means to expand, thus contributing decisively to the growth of the country as a whole.

At a conference where 115 executives from multinational companies were in attendance, President Geisel said: "Brazil will go ahead more quickly, if Brazil's own efforts are complemented by those of capital from abroad." This was the final confirmation that Brazil is moving forward in the direction of a development that is free, well-organized and open to cooperation from abroad, within the framework of existing national priorities and of the legal and administrative procedures which the Brazilian government has laid down.

Page 11

From January to September of 1975, there were negotiated through the Department of Foreign Trade of the Banco do Brasil accords for the participation of national industry in foreign investments in the order of US$2 billion. The share of the national industry was 60.38% of these investments, as opposed to 58.37% in 1974 (for accords totalling US$2.15 billion) and 52.65% in 1973 (when the accords totalled US$689 million).

Petrobras will have a US$450 million budget in 1976 for exploration and drilling. It expects to add 16,000 bpd in production from the Cioba and Guaricema fields off the coast of Sergipe. Petrobras plans to hire 3 more offshore exploration platforms, bringing its total number in operation up to 21.

The agency's overseas subsidiary, Braspetro, expects to start exploratory drilling before yearend on contract areas in Iraq and Egypt. It will also start wildcat drilling in 1976 in Algeria and Libya.

The future hydroelectric plant at Itaipu, on the banks of the Paraná River, on the frontier between Brazil and Paraguay, has entered the construction phase. At the beginning of October the contract was signed between Itaipu Binacional and the Brazilian Paraguayan consortium of firms for the construction of the diversion canal, by 1975, near the plant site. The project will cost US$300 million. Work on the diversion canal should begin immediately since the infrastructure is completed. A residential town for the workers has been set up with 1160 houses and an expected population of 80 thousand.

At the end of November exhibitors from West Germany, the United States, France, Great Britain. Italy, Switzerland, Austria, Czechoslovakia, Sweden and Portugal participated in the First International Mechanical Engineering and Electro-Electronics Fair, held at the Anhembi Park Exhibition Hall in São Paulo. The United States was represented by some 80 machine tool industries and suppliers of equipment and tools, electro-electronic and measuring instruments and accessories.

France participated with 48 firms, representing the major sampling of the mechanical and electro-electronic sectors. Three French Banks were present: Banque Nationale de Paris, Credit Industrial et Commercial and Banque Française du Commerce Exterieur.

Production of motor vehicles by Fiat in the State of Minas Gerais should commence in Mayor June next year, according to an announcement by the Fiat President in Brazil, Mr. Adolfo Neves Martins da Costa. The greater part of the work of setting up the plant - about 75% – has been completed. As of January 1976 some mechanical parts for vehicles will be produced.

The main production line of Fiat in Brazil will consist of vehicles with a high degree of economy in fuel consumption and the output should rapidly expand to some hundreds of thousands of units, by which time the company will figure among the largest in Brazil and Latin America.

Centrais Eletricas de São Paulo (CESP) will buy one or more atomic reactors from the German consortium KWU - Kraftwerk Union Aftiengesellschaft for the nuclear power plant which the firm will construct and operate in the State of São Paulo, probably in Iguape. This news was released last month by the Brazilian Minister of Mines and Energy at the I Fair of Mechanics and Electro-Electronics at Anhembi Park in São Paulo.

(Continued on Page 8) nology be encouraged with other countries, at the government level, when they can be obtained from official institutes of the countries; that alternatives to promote the training of Brazilian professionals on various levels be evaluated and selected.

Conference submits report on industry

ment of the tax placed on profits from loans and risk capital; that the development banks and state-controlled financial agencies establish more favorable conditions for the concession of loans to firms; that the concession of fiscal incentives be limited to the subscription of new stocks; that the Law of the Sociedades Anonimas (Corporations) be passed with the proposed revisions; that regulations be established for the admission of new foreign investments into the industrial sector, in a way that such investments will not affect already-established industry.

Last month more than 200 businessmen from all over Brazil attended the I Brazilian Congress of the Electric and Electronics Industry, which was promoted by ABINEE. The central theme of the Congress was "Subsidies for the Policy of Industrial Development." A special commission, composed of 27 members, dealt with the topic at hand and submitted a report.

In their work, the study group indentifies three areas, which keep firms from taking advantage of their full potential in the process of national development. They are divided thusly: 1) structural – involved with problems of capital, definition of priorities and updating the value system which served as a basis for the establishment of the policy of incentives; 2) technological – concerned with tendencies which are not compatible with the industrial model of a horizontally integrated structure, adopted in Brazil; 3) marketing – affecting, simultaneously, the process of expansion of the domestic market and the penetration of foreign markets by Brazilian products. Structural Problems

After analyzing the phenomena which caused the present economic predicament, both worldwide and national, and alluding to the measures adopted by the Brazilian government for industrial revitalization, the special commission observes in its work that some industrial sectors have not yet recuperated from the inflationary period.

The study includes the following profile of the Brazilian industrial scene: the composition of the capital of the 500 largest firms in Brazil, in 1970, which still continues without major alterations, reveals the minority participation of the private national firm.

In terms of net assets the private national firm is not even represented among the 10 largest, while the state firm has a participation of 82.2% and the multinational firm, 17.6%. Among the 100 largest, only 15% are private national firms, while the state firms represent 58% and the multinationals, 27%. Among the 500 largest, the multinational participates with 32.3%, the state with 44.9% and the national with 22.8%.

The study suggests the following measures: that large investments be made in the stock market and that measures be adopted for standard treat

Technological Problems

For problems of a technological order the 27 members of the special commission suggested: that a deduction of up to 30% on corporate income tax be authorized and that more investments be made for research in technological development and that technical regulations be set up; that foreign specialists, or Brazilians who have obtained expertise abroad be contracted for the execution of temporary professional activities in Brazil, in programs of technical and scientific updating in universities and institutes of national research; that agreements for the transfer of tech

Marketing

Concerning marketing, the study makes suggestions in relation to the domestic market: that the authorities proceed in the execution of a salary policy which guarantees, through annual readjustments and the incorporation of a rate of productivity growth, the increase of real salary and of the buying power of the average worker; that the plans for rural electrification be activated, thus giving the rural population new opportunities for education, comfort and productivity.

In relation to the foreign market, the study suggests: that negotiations be opened and compensation agreements be signed with countries which are exporting to Brazil, in order to place their markets at the disposition of Brazilian products; that a more complete Brazilian representation be placed abroad, thus giving a wider field and a quicker information flow on trade opportunities.

Brazil's auto industry is at advanced stage of development

Brazil's cement industry closed the first semester of this year with an increase of 10% over the correspondent period of 1974, with a production of 712,070 tons of the product.

The State of Rio de Janeiro will have the first large nuclear pole in Brazil with the establishment in the municipality of Sepetiba of two NUCLEABRAS plants and an ample nuclear technology development center, construction of which will be started next year.

On the other hand, the Ministry of Mines and Energy is expected to set up a state enterprise for developing the exploration of Brazilian coal which will finance the conversion to coal of thermoelectric power plants which are using diesel oil for fuel.

The Minister stated that new atomic centers will gradually be built in accordance with the energy demand. "It is obvious that Brazil will need various nuclear centers and among the concessionary electricity firms which have the conditions of eventually being responsible for the construction and operation of atomic centers, CESP occupies a position of distinction, since it operates in the most important market in the country," he added.

From January to September of 1975, there were negotiated through the Department of Foreign Trade of the Banco do Brasil accords for the participation of national industry in foreign investments in the order of US$2 billion. The share of the national industry was 60.38% of these investments, as opposed to 58.37% in 1974 (for accords totalling US$2.15 billion) and 52.65% in 1973 (when the accords totalled US$689 million).

Petrobras will have a US$450 million budget in 1976 for exploration and drilling. It expects to add 16,000 bpd in production from the Cioba and Guaricema fields off the coast of Sergipe. Petrobras plans to hire 3 more offshore exploration platforms, bringing its total number in operation up to 21.

The agency's overseas subsidiary, Braspetro, expects to start exploratory drilling before yearend on contract areas in Iraq and Egypt. It will also start wildcat drilling in 1976 in Algeria and Libya.

The future hydroelectric plant at Itaipu, on the banks of the Paraná River, on the frontier between Brazil and Paraguay, has entered the construction phase. At the beginning of October the contract was signed between Itaipu Binacional and the Brazilian-Paraguayan consortium of firms for the construction of the diversion canal, by 1975, near the plant site. The project will cost US$300 million. Work on the diversion canal should begin immediately since the infrastructure is completed. A residential town for the workers has been set up with 1160 houses and an expected population of 80 thousand.

At the end of November exhibitors from West Germany, the United States, France, Great Britain. Italy, Switzerland, Austria, Czechoslovakia, Sweden and Portugal participated in the First International Mechanical Engineering and Electro-Electronics Fair, held at the Anhembi Park Exhibition Hall in São Paulo. The United States was represented by some 80 machine tool industries and suppliers of equipment and tools, electro-electronic and measuring instruments and accessories.

France participated with 48 firms, representing the major sampling of the mechanical and electro-electronic sectors. Three French Banks were present: Banque Nationale de Paris, Credit Industrial et Commercial and Banque Française du Commerce Exterieur.

Production of motor vehicles by Fiat in the State of Minas Gerais should commence in May or June next year, according to an announcement by the Fiat President in Brazil, Mr. Adolfo Neves Martins da Costa. The greater part of the work of setting up the plant - about 75% – has been completed. As of January 1976 some mechanical parts for vehicles will be produced.

The main production line of Fiat in Brazil will consist of vehicles with a high degree of economy in fuel consumption and the output should rapidly expand to some hundreds of thousands of units, by which time the company will figure among the largest in Brazil and Latin America.

Centrais Eletricas de São Paulo (CESP) will buy one or more atomic reactors from the German consortium KWU - Kraftwerk Union Aftiengesellschaft for the nuclear power plant which the firm will construct and operate in the State of São Paulo, probably in Iguape. This news was released last month by the Brazilian Minister of Mines and Energy at the I Fair of Mechanics and Electro-Electronics at Anhembi Park in São Paulo.

(Continued on Page 8) nology be encouraged with other countries, at the government level, when they can be obtained from official institutes of the countries; that alternatives to promote the training of Brazilian professionals on various levels be evaluated and selected.

Conference submits report on industry

ment of the tax placed on profits from loans and risk capital; that the development banks and state-controlled financial agencies establish more favorable conditions for the concession of loans to firms; that the concession of fiscal incentives be limited to the subscription of new stocks; that the Law of the Sociedades Anonimas (Corporations) be passed with the proposed revisions; that regulations be established for the admission of new foreign investments into the industrial sector, in a way that such investments will not affect already-established industry.

Last month more than 200 businessmen from all over Brazil attended the I Brazilian Congress of the Electric and Electronics Industry, which was promoted by ABINEE. The central theme of the Congress was "Subsidies for the Policy of Industrial Development." A special commission, composed of 27 members, dealt with the topic at hand and submitted a report.

In their work, the study group indentifies three areas, which keep firms from taking advantage of their full potential in the process of national development. They are divided thusly: 1) structural – involved with problems of capital, definition of priorities and updating the value system which served as a basis for the establishment of the policy of incentives; 2) technological – concerned with tendencies which are not compatible with the industrial model of a horizontally integrated structure, adopted in Brazil; 3) marketing – affecting, simultaneously, the process of expansion of the domestic market and the penetration of foreign markets by Brazilian products. Structural Problems

After analyzing the phenomena which caused the present economic predicament, both worldwide and national, and alluding to the measures adopted by the Brazilian government for industrial revitalization, the special commission observes in its work that some industrial sectors have not yet recuperated from the inflationary period.

The study includes the following profile of the Brazilian industrial scene: the composition of the capital of the 500 largest firms in Brazil, in 1970, which still continues without major alterations, reveals the minority participation of the private national firm.

In terms of net assets the private national firm is not even represented among the 10 largest, while the state firm has a participation of 82.2% and the multinational firm, 17.6%. Among the 100 largest, only 15% are private national firms, while the state firms represent 58% and the multinationals, 27%. Among the 500 largest, the multinational participates with 32.3%, the state with 44.9% and the national with 22.8%.

The study suggests the following measures: that large investments be made in the stock market and that measures be adopted for standard treat

Technological Problems

For problems of a technological order the 27 members of the special commission suggested: that a deduction of up to 30% on corporate income tax be authorized and that more investments be made for research in technological development and that technical regulations be set up; that foreign specialists, or Brazilians who have obtained expertise abroad be contracted for the execution of temporary professional activities in Brazil, in programs of technical and scientific updating in universities and institutes of national research; that agreements for the transfer of tech

Marketing

Concerning marketing, the study makes suggestions in relation to the domestic market: that the authorities proceed in the execution of a salary policy which guarantees, through annual readjustments and the incorporation of a rate of productivity growth, the increase of real salary and of the buying power of the average worker; that the plans for rural electrification be activated, thus giving the rural population new opportunities for education, comfort and productivity.

In relation to the foreign market, the study suggests: that negotiations be opened and compensation agreements be signed with countries which are exporting to Brazil, in order to place their markets at the disposition of Brazilian products; that a more complete Brazilian representation be placed abroad, thus giving a wider field and a quicker information flow on trade opportunities.

Brazil's auto industry is at advanced stage of development

Incentives granted for gold production

During the colonial period Brazil was one of the largest exporters of gold, but today the country is an importer, despite the fact that it has the ecological conditions favorable to the discovery of beds with enormous potential. At present Brazil produces only 850 kilos of gold monthly, but has a consumption of close to 3 thousand kilos per month.

The Brazilian government intends to alter this situation at a medium term by implementing incentives, on a large scale, for gold production in the country. The government intends to finance all the mineral activity, from the elaboration of research projects to the primary transformation of the metal.

For this program a number of methods will be used. The first of these, already in execution, is the assessment of all the existent claims and the conditions of each. The National Department of Mineral Production and the Company for the Research of Natural Resources also intends: 1) to put together all existing documentation on the mineral areas; 2) to plot on basic maps all the mines - both old and functioning showing those areas with decrees, permits and requests for study, still in effect; 3) to list those gold miners with processes approved or going through the proper channels of DNPM, so that new investors can be put in contact with those most needing financial or technical assistence, thus facilitating the expansion and intensification of activity; 4) to execute geological/structural maps and geophysical surveys in designated areas in order to further the interest of national and foreign investors in the mining of gold; 5) to improve conditions of infrastructure in those areas which are most deficient; 6) and finally, to offer financing at low interest rates and/or with “risk clauses” for surveying gold and for the development of processing tests.

The new gold policy has already begun to attract the interest of foreign groups. From the point of view of the Anglo-American Corporation (Oppenheimer group), prospects for the exploration of gold in Brazil are “extremely attractive.” The company, in minority partnership with Calmi (the Antunes group), formed Unigel, which last year invested CR$50 million in gold prospecting in Jacobina, in the State of Bahia.

The Brazilian subsoil offers ample possibilities for the implantation of a program for increasing gold production, especially in the regions of Minas Gerais, Serra de Jacobina (in Bahia) and the Rivers Tapajós, Gurupi and Madeira (in Amazonas). Besides the known occurrences and the abandoned mines in Goias, Mato Grosso, Rio Grande do Sul and Amapá, these regions present a promising geological picture, taking into consideration the recent gold prices on the international market.

Besides the measures already mentioned, the extension of incentives to gold mining is seen as an important step to furthering Brazil's aim to become, at medium term, an exporter of the mineral. For this reason, the Brazilian government intends to extend for 20 years the legislation containing guarantees that the tax on gold or on exploring companies will not be increased and that the government will continue to buy all gold at the prices operative on the international market.

The idea is also circulating to extend the metal section of the fiscal incentives which benefit the export of Brazilian products.

excavating 200 thousand cubic meters per month, picking up from 15 to 20 kilos of gold monthly.

Although it contributed in 1972, 5,227 of the 6,338 kilos of gold produced in Brazil, Minas Gerais has not explored its reserves to potential. Numerous mines have been dormant for more than half a century and cannot be reopened because their proprietors or have not been interested in the exploration of the metal.

Now, with the recent changes in the code of Brazilian mining, many of the previous concessions have been considered too old. This allows these concessions to be passed to other owners or companies.

When the quotation of gold on the international market hit more elevated indices (170/180 dollars per ounce), requests for concession increased in Brazil. In 1973 alone there were 184 requests and in 1974, 136.

In Minas Gerais, in 1973 there was invested in the gold sector CR$16 million 709 thousand, CR$6 million 907 thousand being in geological surveys, CR$9 million 163 thousand in mines, CR$49 thousand in technological research and CR$588 thousand in the mills.

In that year, the forecast for investments for the three year period of 1974/1976 called for CR$127 million 757 thousand: CR$54 million 526 thousand in geological research, CR$62 million 531 thousand in mines, CR$1 million 500 thousand in technological research and CR$9 million 200 thousand in mills.

These investments, however, are being realized slowly, thus contributing to the stability of production. The government has the responsibility for making the sector more dynamic, aiming at the increase of gold production in the country.

In 1974 two mines of the 18 which were dormant for technical/financial reasons, returned to activity. The Passagem de Mariana Mine began to produce again on a large scale and the Mina Maravilha, in the State of Bahia, could reach a production of 90 grams per ton of the mineral.

Last year, with the expiration decree, new mines returned to production, thus indicating the transformation which is beginning to take place in the Brazilian gold sector.

Measured Reserves

According to government studies the measured reserves of the country reach 550 tons of gold. With six mines included among the major ones in Brazil, the Mineração Morro Velho, in Nova Lima, Minas Gerais, is responsible for 51% of Brazilian production of the mineral. Last year, Morro Velho produced 450 kilos monthly, consumed principally in the Rio-São Paulo region, with the jewelry sector absorbing 75%, elctronics 7%, dentistry 7% and the remaining 11% distributed among various sectors.

Also in Minas Gerais, in the muncipality of Mariana, there exists another important bed, with a reserve estimated at 371.6 tons, belonging to the Companhia Minas de Passagem. This firm also explores the alluvial gold of the stream of Carmo, with a reserve estimated at 1.5 tons. The gravel there has 0.12 gram content per cubic centimeter.

The major Brazilian producer of gold, Dragagem Ouro, operates in the Rio das Velhas, in the State of Minas Gerais. This company uses a dredge capable of

Page 12

Soybean processing plant for Parana

Anderson, Clayton & Co. disclosed recently that its Brazilian subsidiary will invest US$17.5 million in a new soybean processing plant that is expected to be one of the largest facilities in Brazil's rapidly expanding edible oil and protein meal industry. The funds for the investment will derive from the Brazilian concern's retained earnings, according to T. J. Barlow, president of Anderson, Clayton.

Completion of the plant is expected by September 1977, in the city of Ponta Grossa, in the State of Paraná. Initial capacity is estimated at a daily level of 1200 tons of soybeans. Provisions for future increase of production capacity are being incorporated into the original design. Oilseed Capacity

The facility will double Anderson, Clayton's current oilseed processing capacity in Brazil, and will utilize the processing industry's most advanced technology. Large warehouses and silos will provide the necessary storage capacity to feed continuously the oilseed processing operation.

Mr. Barlow explains the plans: “Brazil has become the second largest soybean producer in the world. In addition to this new facility, we are presently increasing capacity at two soybean crush

ing plants in Brazil, which will bring daily crushing capacity up to about 2,000 tons per day."

The subsidiary has sales of about US$250 million, principally derived from oilseed processing, food products, animal feeds and coffee export. The parent company is a Houston-based food company whose major operations are located in the United States, Brazil and Mexico. It processes and markets consumer and institutional foods, oilseed products, animal and poultry feeds and planting seed.

The US Department of Agriculture estimates Brazil's 1975 soybean crop at 9.6 million tons, about one-third above the previous year.

Another increase in Brazilian production is projected for 1976, possibly to about 11.5 million tons, which would represent an increase of 20 percent over 1975 levels. This crop will enter world markets in the latter half of the current US marketing season.

Production in the past several years in Brazil has far exceeded initial expectations, and recent factors will strengthen results even further. Domestic consumption is likely to grow at an enormous rate.

The Brazilian government currently subsidizes planting of beans and shipment of oil.

Export Schedule

The table below shows the value in US$ millions of the principal products exported by Brazil from January to September of 1974, compared with the same period in 1975. EXPORTS - January to September – in US$ millions Items

1975

1974

% Variation 1. Basic Products

3,882 2.953

31.5 Sugar

690 428

61.1 Raw Cotton

58

76

- 23.5 Cocoa beans

158 134

18.3 Coffee

649 625

3.9 Soy bran and cake

330

161

105.5 Tobacco

112

74

51.6 Maize

114

41

175.6 Iron ore

652 387

68.6 Soybeans

570 467

22.1 2. Semi-manufactured Products

652

654

-0.2 181

185

- 2.0 Soy oil

106 3. Manufactured Products

1,893 1.620

16.8 113

33

238.3 Footwear

121

95

27.2 Electrical appliances

113

124

- 8.6 Transpport material

232 118

95.8 Source: CACEX – Banco do Brasil

Page 13

LUMBER. Overseas Trading Comércio Exterior S.A., Rua Libero Badaró 425, andar 29, conjunto 292, São Paulo, S.P., Brasil.

ANNOUNCEMENTS BRAZILIAN MANUFACTURER of decorative hides and skins, leather handbags, footwear and skins for clothing seeks US representative for its products. Arthur Lange S.A., Caixa Postal 468, Pelatos, Rio Grande do Sul, Brasil. BRAZILIAN MANUFACTURER of black and white televisions, radios and sound equipment seeks American firm interested in joint venture. Brazilian firm in need of investment capital for expansion. Contact: Mr. Natalino Pasquale Di Stasi, Indústria Eletrônica de Rádio e Televisão Telestasi Ltda., Rua Clemente Bonifácio 80, Caixa Postal 13.232, São Paulo, S.P., Brasil. Telephone: 274-9333. EXPORTER OF BRAZILIAN PRODUCTS IN GENERAL. Setemp Trading Company, Rua Goitacazes 71, conj. 201, Caixa Postal 306, Belo Horizonte, Minas Gerais, Brasil. COMPANY offers complete assistance to executives on business trips to Brazil (offices, bi-lingual secretaries, interpreters), and services as buying agents. EMESSE S.A., Avenida Paulista 1159, sala 1210, 01311 São Paulo, S.P., Brasil. (Telephone: (212) 582-9119). BRAZILIAN FIRM offers services as representative for national and foreign firms. Incentiva Comércio, Importação e Exportação Ltda., Rua Frei Caneca 1407, 8° andar, conj. 818, São Paulo, S.P., Brasil. ASSISTANCE TO EXECUTIVES IN BRAZIL. Office offers all facilities for people on business trips. (Services by day, week, or month; bi-lingual staff, messenger service, interpreters; general guidance to living and working in São Paulo). Great Start Ltda., Caixa Postal 6038, Praça da Republica 177, conjunto 111, São Paulo, S.P., Brasil. Telephone: 34-3245. Cable: Greatstart, S.P., Brasil. TRADING COMPANY OFFERS variety of products. Contact: V. M. Vendas Marketing and Trading S.A., Alameda Nothmann 611, 01216 São Paulo, S.P., Brasil. BRAZILIAN FIRM offers services as buyin agent in Brazil. Quasar Administração, Planejamento e Representações Ltda., Rua 5 de julho 98, 04281 São Paulo, S.P., Brasil. LAWYER, American, trained in Brazil, offers counsel to US firms. Morris Schlesinger, Avenida Presidente Vargas 633, gr. 2108/9, Rio de Janeiro, RJ, Brasil.

DOORS. Orbraci Ltda., Rua Constança Barbosa 215, sala 301, Rio de Janeiro, Rio de Janeiro, Brasil.

FLOOR TILES, mosaic cubes. Cerâmica Chiarelli S.A., Rua Domingos Brunelli 180, Caixa Postal 8687, Mogi-Gauçu, São Paulo, Brasil. Attention: Mr. Oscar Chiarelli. Cable: CHIARELLI. Telephone: 6-0404.

KNOCK-DOWN & MODULAR FURNITURE. Indústria de Madeiras Kauder S.A., Caixa Postal 13, Rua Santa Carolina 65, 09.000 Santo André, São Paulo, S.P., Brasil. SERVING CARTS in rosewood, colonial style. Rochas Esquadrias de Madeira Ltda., Avenida Jabaquara 2137, São Paulo, S.P., Brasil.

BRAZILIAN GOVERNMENT TRADE BUREAU A Department of the Brazilian Consulate General in New York

551 Fifth Avenue, New York, N. Y. 10017 (212) 682-1055

Information on Brazil can also be obtained from:
Brazilian Embassy, 3006 Massachusetts Ave., N.W., Washington, D. C. 20008

(202) 797-0100
Brazilian Consulate General, 630 Fifth Avenue, New York, N. Y. 10020

(212) 757-3080 Brazilian Consulate, 3400 Montrose Boulevard, Houston, Texas 77006

(713) 526-3941 Brazilian Consulate General, 2 Canal Street, New Orleans, La. 70130

(504) 525-9874 Brazilian Consulate General, 20 N. Wacker Drive, Chicago, III. 60606

(312) 372-2176 Brazilian Consulate General, 5900 Wilshire Blvd., Los Angeles, Calif. 90038

(213) 937-4044 Brazilian Consulate, 100 N. Biscayne Blvd., Miami, Fla. 33132

(305) 377-1734

AUTOS & AUTO PARTS TRAILERS, trailer trucks, buses, loading beds, dump trucks. Grupo Industrial Rodoviária, Departmento de Exportação, Rua Matteo Gianella 1442, Caixa Postal 145, 95.100 Caxias do Sul, Rio Grande do Sul, Brasil.

DENIM JACKETS & SLACKS. Grupo Cidrão Industria e Comercia de Exportação, Avenida Euzébio Matoso 237, São Paulo, S.P., Brasil.

MEN'S FOOTWEAR. Calçados Sandalo S.A., Avenida Brasil, Franca, São Paulo, Brasil.

MISCELLANEOUS STEEL WOOL CLEANING PADS. Pardelli S.A. Indústria e Comércio, Rua Voluntários da Pátria 4816, Mandaqui, São Paulo, S.P., Brasil. Cable: PARDELLI, São Paulo.

BATHROOM FIXTURES, Tinley & Filhos S.A., c/o Pando Internacional Ltda., Rua Dois 112 (trav. João Dies, 1925), Santo Amaro, São Paulo, Brasil. HANDMADE SHEEPSKIN RUGS, in variour colors and sizes. Sinimbú Importação Exportação Ltda., Rua Sinimbú 1912, Sala 2, Edifício Central Palace, 95.100 Caxais do Sul, Rio Grande do Sul, Brasil. BEDS. Indústria e Comércio de Móveis Dircilda Ltda., Rua Regente Feijo 345, Santo André, São Paulo, Brasil. Telephone: 4496499 or 449-6604. BATHROOM FIXTURES. Cidamar S.A. Indústria e Comércio, Rua Bom Jesus de Pirapora 3383, Caixa Postal 45, Jundiaí, São Paulo, Brasil. Telephone: 2074 or 2075. Telex: 445-3105. Attention. Mr. Miguel May. ORNAMENTAL FLOWERS. Caetano Nascimento Mascarenhas, Caixa Postal 725, Avenida Amazonas 8400, Belo Horizonte, Minas Gerais, Brasil. Telephone: 33-0026. WOODEN FURNITURE. Farro Industrial S.A. Comercial e Exportadora de Madeiras, Rua 15 de Novembre 362, Caixa Postal 2650, Curitiba, Paraná, Brasil. Attention: Mr. Antonio Augusto de Brito. Telephone: 24-0556. Cable: FARRO. BLANKETS & QUILTS, of wool, acrylic and other fibers. S.A. Fabril Scavone, Rua João Annes 143, São Paulo, S.P., Brasil. FINE BATHROOM CABINETS, with mirrors; also toilet paper holders, soap trays. Buonacorso & Cia. Ltda., Avenida Santa Catarina 1889, São Paulo, S.P., Brasil. CHANDELIERS. Europa Lustres Indústria e Comércio Ltda., Rua Girasol, 325, São Paulo, S.P., Brasil. DRIED FLOWERS, natural and dried, arrangements. Flôres Decorativas Ltda., Rua das Indústrias 430, Caixa Postal 55, 32.200 Contagem, Minas Gerais, Brasil.

CANNED FRUIT & VEGETABLES. Agape S.A. Indústria da Alimentação, Avenida Saldado Filho 641, Caixa Postal 543, Pelotas, Rio Grande do Sul, Brasil. Cable: AGAPE. GUARANA. Cia. Antartica Paulista, Avenida Pres. Wilson, 274, São Paulo, S.P., Brasil. Telephone: 279-9122. Cable: ANTAECTICA. HEARTS OF PALM. Prince Indústria e Comércio Ltda., Avenida Rio Branco 37, grupo 602, 20.000 Rio de Janeiro, Rio de Janeiro, Brasil. ARTIFICIAL HONEL. Triangula Azul S.A., Avenida São João 61-A, São Paulo, S.P., Brasil. CEREALS. Certus Importação Ltda., Avenida Franklin Roosevelt 23, s/lopas 201 D, Rio de Janeiro, Rio de Janeiro, Brasil. FROZEN FISH & SHRIMP. Pescal S.A., Rua Marechal André 1268, Rio Grande, Rio Grande do Sul, Brasil. TROPICAL FRUIT: mangos, pineapples, aronges, also raw and steamed bone meal. Leão Rodrigues Indústria, Comércio e Exportação Ltda., Avenida Padre Almeida Garrett 557, 13.100 Compinas, S.P. Brasil. SARDINES, canned, canned hearts of palm, orange juice. Leandro Gabriel Exportasion, Rua General Osório 185, 5° andar, Caixa Postal 940, Companis, São Paulo, Brasil.

ACCORDIONS. Acordeões Scala, Caixa Postal 129, 95.700 Bento Gonçalves, Rio Grande do Sul, Brasil.

PARTY FAVORS. Benjamin Augusto Exportação e Importação, Rua Analdo Quintele 54/202, Rio de Janeiro, Rio de Janeiro, Brasil.

WHALE SHOES for men and women. Calçados Paragon S.A., Caixa Postal 361, Rua Cel. Tarmarindo 2745, 14.400 Franca, São Paulo, Brasil. Telephone: 22-2505 or 22-3671.

PRECIOUS & SEMI-PRECIOUS STONES, ashtrays with stones. Organizações Josué Irfri Ltda., Avenida Augusto de Lima 2126, Belo Horizonte, Minas Gerais, Brasil,

SMALL LEATHER GOODS. Luiz Gonçalves da Silva, Caixa Postal 262, Compos do Jordão, São Paulo, Brasil. U.S. Representative: EMESSE S.A., 358 5th Avenue, N.Y., N.Y. Telephone: (212) 947-1038.

TEXTILES TEXTILES, raw cotton; also, leather and leather goods, foodstuffs. Eduardo Florsheim, Florsheim Eport Import Ltda., Líbero Badaró 346, 10°, Caixa Postal 820, São Paulo, S.P., Brasil. Telephone: (011) 357171 PBX. Telex: 1122614EFLO BR. Cable: FLOREX. RAW COTTON TEXTILES, ready-to-wear for children. Comercial Importação e Exportação Ltda., Avenida Dr. Carlos Firpo 303, Aracajú, Sergipe, Brasil.

STEREO AMPLIFIERS. Indústria Eletrônica Eudgert S.A., Caixa Postal 2004, Recife, Pernambuco, Brasil.

TOILET BOWLS, white or in color. CIDAMAR S.A. Industria e Comercio, Caixa Postal Jundiaí, São Paulo, Brasil.

OPTICAL LENSES. Sociedade Anônima Brasileira de Indústria Otica Sabio, Caixa Postal 3626, Recife, Pernambuco, Brasil.

RAWHIDE DOG CHEW and leather accessories for pets. MANUTEC Import-Export Dept., Caixa Postal 30047. Sã Paulo, S.P., Brasil. Cable: MANUTEC, São Paulo.

BRAZILIAN GEMS. Beljóias Leda., Rua Carijós, 424, andar 16, Belo Horizonte, Minas Gerais, Brasil.

EDIBLES DRIED BANANAS, sweets made from tropical fruit. Produtos Finura, Frutas Industrializadas do Nordeste S.A., Avenida Perimetral 95, Caixa Postal 1077, Mondubim, Fortaleza, Ceará, Brasil. ORANGE JUICE, concentrated and frozen; also bicycles, bathroom cabinets, sardines in cans, sun glasses, auto parts, industrial rubber gloves. Luwas Comércio Exterior Ltda., Rua Antônio Carlos 196, Apt. 122B, 01309 São Paulo, S.P., Brasil. CASHEW NUTS, shelled. Irmãos Fontenele S.A., Com. Ind. e Agricultra, Avenida Alberto Nepomuceno 113/131, Caixa Postal 1025, Fortaleza, Ceará, Brasil. Cable: FLORENCINELE, Fortaleza, Brasil. COTTON SEED OIL, soy oil, margarine, shortcakes. CONSUBRASA, Comercial Norte Sul do Brasil, Exportaçãa e Importação Ltda, Rua 7 de Abril, 125, 3°, conjunto 301, CEP 01043 São Paulo, S.P., Brasil. Telex: (011) 22256. Telegraph address: CONSUBRASA.

WEARABLES COSTUME JEWELRY, in silver and semiprecious stones, with zodiac signs, charms, birds, etc. Eduardo-Joalheiro, Avenida Afonso Pena 748, Sala 1211, Belo Horizonte, Minas Gerais, Brasil. MEN'S FOOTWEAR. Calçados Terra S.A., Caixa Postal 163, 14.400 França, São Paulo, Brasil. LEATHER BELTS, metal buckles and ladies' handbags. Netinho Ltda., Rua Javáes 202, Bom Retiro, São Paulo, Brasil. CLOTHING, footwear. Soma, Escritórios Reunidos Ltda., Caixa Postal 723, Rua Guilherme Rocha 381, conjunto 512, Fortaleza, Ceará, Brasil. MEN'S & WOMEN'S LEATHER JACKETS. EMBRACIL, Empresa Brasileira de Comércio Internacional Ltda., Rua do Riachuelo 42, sala 005, Rio de Janeiro, Rio de Janeiro, Brasil.

REPUBLICATION Bonafide news media may republish any or all of the material in this Brazilian Bulletin, though a creditline is requested.

Loan is approved for CHESF project

The Inter-American Development recently announced the approval of a US$35 million loan to help construct a 234-mile transmission line between the Paulo Afonso hydroelectric station on the São Francisco River and the area of Salvador in northeast Brazil.

The loan was extended to the Companhia Hidro Elétrica do São Francisco (CHESF), a government corporation developing the power potential of the river, which is the largest source of electric power in the region.

CHESF will use the resources of the Bank loan to costruct a single circuit 500-kilovolt transmission line between the Paulo Afonso station and the Cam

açari substation situated in the vicinity of the city of Salvador in order to meet the projected demand for electric power in that area.

The total cost of the project is estimated at US$67.9 million, of which the Bank loan will cover 51.5 per cent and CHESF the remaining 48.5 per cent.

The project forms an integral part of CHESF's Fourth Expansion Plan which is partially financed by three previous loans totalling US$57.2 million extended by the Inter-American Bank in 1972 to Centrais Elétricas Brasileiras S. A. (ELETROBRAS), the Brazilian agency charged with executing national electric power programs, for the construction

of the Moxotó storage dam on the São Francisco River and the Moxotó hydroelectric plant with a capacity of 440,000 kilowatts, located about two miles upstream from the Paulo Afonso power complex, and related transmission facilities.

In the light of economic and technical studies carried out by ELETROBRAS in 1973, CHESF has been obliged to reformulate the transmission system included in the original plan. Accordingly, several 400-kilovolt lines were eliminated and a number of 500-kilovolt lines, including the Paulo Afonso-Camaçari lines, were added.

Mineral projects move ahead in Brazil

One of the biggest diversification projects to be undertaken in Brazil is the Albras alumina-aluminum venture

a joint venture of Cia. Vale do Rico Doce (CVRD) and the Light Metals Smelter Association of Japan. In Albras, along with the Trombetas bauxite project and established domestic production of aluminum, Brazil now has a broad growth base for a light metals industry.

Albras facilties are to be located near Belem and accessible to both Trombetas bauxite and the closer identified reserves at Paragominas discovered by CVRD.

Japan is sending a technical mission to Brazil to iron out final details of this US$2.7 billion project. Construction may start by June 1976, with CVRD as 51% partner providing US$275.4 million in equity and the Japanese putting up US$275.3 million. The remainder would be covered by loans. Nickel Projects

Of the four nickel projects of interest, the one for which planning is most advanced is a deposit at Barro Alto.

Here, Baminco Mineração e Siderurgia S.A. has identified a pateritic nickel

a deposit, 150 airline km northwest of Brasília. Located in Goias State, this nickel deposit and three others are now under evaluation for production possibilities in Brazil. Baminco, however, is somewhat more advanced in preliminary engineering

The principal shareholders in Bam

inco are the International Nickel Co. of Canada Ltda., a German consortium (represented by Exploration und Bergbau GmbH and Metallgesellschaft AG) and minority Brazilian participation.

Baminco was the subject of extensive exploration between 1969 and 1972 in an area of about 26 square kilometers. Various exploration techniques at the site include test pitting and diamond core drilling. Several large bulk samples of some 1,000 tons each have been excavated. The results indicate proved geological reserves of about 40 million mt with an average grade of over 1.9% Ni at a cut-off of 1.2%.

The ores are weathered products of an ultramafic instrusive 800 m to 1,000 m wide and about 30 km long. They form a number of distinct orebodies on slopes and between ridges of silicified material. The major nickelferous minerals are limonite, sepentinite, and smectite clays, forming two distinct ore types. The ore can be developed by open-pit methods, with haulage distances varying from 1 to 9 km.

Upgrading of the ore by standard concentration has proved to be impossible because of geological and tectonic characteristics that are specific for the deposit. The chemical and mineralogical composition of the ore, however, is favorable for a pyrometallurgical process. The technical viability of a process for smelting of ferro-nickel was investigated by testing 1,000 tons of ore in 1974 at Inco's pilot plant in Port Colborne, Canada.

The low grade of Baminco's identified reserves would require erection of a smelter at the deposit. Preliminary project design provides for a ferronickel smelter with an annual capacity of about 50 million lb. of nickel in ferronickel ingots. The project will require about 38 months for implementation. A feasibility study is under preparation to investigate the economic viability of the project.

Two existing nickel mines in Minas Gerais produce about 200,000 mt of ore containing about 2,700 mt of nickel. The output is smelted to ferronickel. At Niquelandia, Cia. Niquel Tocantins (a Votorantim group) has reserves estimated at 20 million mt of 1.7% nickel in laterite. Empresa de Desenvolvimento de Recurso Minerais (Codemin) has reserves of 15 million mt of 1.45% nickel, also in Goias. In Piaui, Docegeo is investigating still another nickel laterite.

Copper

Most identified Brazilian copper is in Bahia and Rio Grande do Sul. Only one significant new project is near the mining stage – the Caraiba deposit in Bahia, which has estimated reserves of 45 million mt of 1.3% copper. Two other nearby occurrences have estimated reserves on the order of 15 million mt of 1.2% copper.

Brazil has only one copper mine Camaqua in the State of Rio Grande do Sul, which produces ore at the rate of about 400,000 mtpy.

NUCLEBRAS and Krauftwerk Union signed agreements last month for the forming of the six companies planned for the Brazilian Nuclear Program with West Germany, according to sources from the Ministry of Mines and Energy.

social development. To assure the success of the Treaty, a General Committee for Brazilian-Paraguayan Cooperation has been set up and its objective will be to strengthen cooperation, to study and attend to matters of mutual interest and to propose new measures to carry out the terms of the Treaty itself.

The Brazilian auto industry produced 879,619 vehicles in 1975, representing a 2.73% growth in relation to the previous year.

Last year 883,155 vehicles were sold, an increase of 3.51% over 1974. Volkswagen continued to lead in sales (461,661 units) and production (461,394), according to statistics from the Brazilian Auto-Vehicle Distributors Association.

All the coal mining companies in the State of Santa Catarina, the largest producer state in Brazil of this product, are planning to double coal output (presently at 1.7 million tons) during the next two years, in accordance with directives of the Ministry of Mines and Energy.

The substantial increase in coal production, which will be extended to the coal-producing areas in the States of Paraná and Rio Grande do Sul, is part of the government's policy for restraining imports of petroleum and coal for the country's steelworks.

The coffee market is experiencing one of the strongest highs of the past few years, with prices reaching levels which could provide the coffee producers, this year, with receipts equivalent to two or three times the norm. Coffee from the North of Paraná and the South of Minas Gerais was selling for about US$100 a sack at the beginning of January and prices were expected to rise even further.

Preliminary studies indicate the existence of at least 30 million tons of manganese in the Serra dos Carajas, in the south of the State of Para, an area destined to become the major iron ore producing region in Brazil. One of the manganese beds, that of Lago Azul, is only 15 kilometers from the camp site of Amazonia Mineração (AMZA), a firm formed by the Companhia Vale do Rio Doce (CVRD) and United States Steel, to prospect the Carajas iron. In Lago Azul, AMZA has located two layers of manganese, with reserves estimated at 24 million tons.

PETROBRAS has disclosed that US $680 million will be invested in the exploration and production of oil in 1976. This will represent double the amount of resources invested in 1975 and they will be concentrated in the research for petroleum on the continental shelf.

In the Campos basin there are indications of finds at points a good distance from previous drillings.

Brazil exported more than one and a half million metric tons of sugar from January to November of 1975. This included not only brown sugar, but also various types of white sugar (special and refined granulated). These figures were recently disclosed by the Ministry of Industry and Commerce,

The Friendship and Cooperation Treaty, signed by Paraguay and Brazil, represented the highlight of President Geisel's recent visit to Paraguay. The Treaty establishes the future relationship between the two countries. It calls for mutual exchange in the sectors covering policy, economy, commerce, finance, science, technology, culture, transportation and tourism.

Besides the Treaty itself other documents were signed, including the opening of a credit line by ELETROBRAS for US$3500 million for the Itaipu Binational Project (Empresa Itaipu Binacional).

The Treaty will aim at increasing cooperation between the two countries, completing programs for economic and

Page 14

Dynamic growth shown in chemical industry

The value of production in the Brazilian chemical industry has increased by 20 to 25 percent a year over the past eight years and this dynamic growth is expected to continue well into the 1980's, spurred by new capital investment. Over $2.3 billion in new capital investments have been approved for the 1976-1978 period in the petrochemical and fertilizer sectors alone. These conclusions

made by Delphi Marketing Services, Inc., New York, in a 260-page study of the Brazilian chemical industry, which covers seventeen separate industry sectors.

Petrochemicals, in particular, have grown rapidly, the market research firm says, more than offsetting a less rapid growth in older, more mature segments, such as the chlor-alkali industry.

Ethylene production, now about 335,000 metric tons, should reach 720,000 tons in 1980, leaving an unsatisfied demand of 450,000 tons in that year.

In addition to the original petrochemical complex located around the Petrobras refinery at Cubatão, there are two major new centers, one just outside São Paulo (Petroquimica União) and one at Salvador, Bahia (Camaçari). A third major complex, announced in August 1975, is to be built in Pôrto Alegre.

The synthetic rubber industry, less than fifteen years old, is also reported making rapid strides. Production of carbon black and elastomeric materials reached 274,000 tons last year, up from 204,000 tons in 1972.

In the plastics and resins sector, Brazilian markets have been growing so rapidly that production levels do not necessarily reflect demand, Delphi says.

1977 12,900 46,100 147,000 140,000 238,000 10,000 4,230 4,000 13,700

1.100 144,700 67,600 3,600 3,500 81,260 90,000 9,000

* Source: Delphi Marketing Services, Inc., New York; Associacao Brasileira de Industria Quimica e de Produtos Derivados. Figures are in metric tons.

The study of the Brazilian chemical industry also points up the following: • The fiber industry, demonstrating ex

plosive growth, has increased by 45 percent over the past two years and by 1980 production capacity is expected to more than double. Output is concentrated in continuous filament synthetic fibers, with relatively few companies manufacturing staple

fibers. • Brazil's historical role as a minor pro

ducer of metal oxides is changing rapidly with the discovery of rich deposits of bauxite and increasing dependence of the fast-growing automotive industry on aluminum oxide. From 252,000 tons in 1972, production last year was 326,000 tons, a gain of 30

percent. • A large economic fertilizer industry is a basic element in Brazil's plan to be

a come a major world food producer. The government has formulated a number of incentives and guidelines to encourage investments for a rapid build-up in the industry and to eliminate dependence on import supplies by 1980.

Capacity for nitrogen fertilizers of 156,000 tons in 1974 is scheduled to grow to 1,436,000 tons in 1980. Phosphate fertilizers, with 301,000 tons of capacity last year, are expected to grow to 1,911,000 tons over the same period while potash, not now produced in Brazil, should reach 1 million tons in 1980.

Chlor-alkali production capacity, which has grown little since 1970, is undergoing substantial expansion. Caustic soda capacity of 261,000 metric tons in 1974 is projected to 840,000 tons in 1976, with comparable figures for coproduct chlorine of 227,000 and 734,000 tons, respectively. Soda ash capacity of 150,000 tons will reach 450,000 tons in 1976.

Development of a Brazilian solvents industry has been influenced greatly by availability of fermentation ethanol at low subsidized prices. Production of synthetic oxygenated organic solvents increased about 30 percent between 1972 and 1974 to about 112,000 tons, or about 95 percent of installed capacity. Production capacity of oxygenated solvents and their intermediates is currently being expanded and will total about 297,000 tons by 1977.

Economic goals remain the same for '76

The challenge to be confronted by the Brazilian economy in 1976 is the same as that of 1975-to maintain the greatest possible growth rate, without compromising the balance of payments and spurring inflation upward. In 1975 the Gross National Product reached 5% and inflation was about 30%. The deficit in the balance of trade is situated at US$ 3.8 billion.

While the 1975 results were modest when compared with the economic indicators of the past few years, Brazil, in terms of the world's economic map, represented an "island of tranquility," due to certain favorable tendencies which appeared.

(17.8% in real terms) in Rio de Janeiro, in relation to the same month of 1974. In October industrial consumption of electric energy, accumulated from January, experienced an increase of 3.2%, opposed to 1.9% up to September. Besides this, in the first nine months of the year, the sales of electrodomestic items revealed a good advance in principal products. • Exports closed the year with an ap

proximate growth of 15%, in relation

to the previous year. • Simultaneously, the import total was

similar to that verified in 1974, i.e., US$12.5 billion.

In the first half of 1975 exports grew by about 36%, but in the second half of the year pressures arose from the fall in the international prices of primary products, especially of soybean and sugar, presently the principal items on the Brazilian export schedule. Nevertheless, the deficit in the balance of trade in 1975 was at least 15% less than that of 1974. • The rate of inflation for the twelve

months of 1975 was around 30% against 34.5% in 1974. Up to June, the general price index presented a highly satisfactory behavior pattern: 12.7%, as opposed to 22.4% in the same period of 1974.

From the above mentioned items it is clear to see that progress was made in Brazil over 1974. What is most important is that it was not necessary to repeat in 1975 the drastic measures for inflation control.

The tendencies of the principal indicators, the prospects for recovery of the world economy and the problems which confronted the domestic arena indicate that the policy to be followed in 1976 will not be very different from that employed in 1975. "For 1976," Minister Mario Henrique Simonsen recently declared, "the objective of the government will be to reduce the trade deficit until it is almost balanced.”

A recently-released study of the United States Department of Commerce on Brazil is quite optimistic. After lining up the problems presently confronted by the Brazilian economy, the study concludes that "at a long term the prospects continue to be good because a fourth of the GNP is being employed."

While it would be unrealistic to expect that the Brazilian economy would grow indefinitely at rates higher than 10% per year, especially when confronted with a crisis like the petroleum one, it would be equally unrealistic to believe that the problems created by this crisis will not find a solution, in a relatively short period of time.

• The GNP grew above the demographic

growth rate and, therefore, per capita income increased in Brazil. To maintain the level of activity, the government returned Income Tax, reduced the installments of the Financial Housing System, lowered its cash reserve surplus and authorized salary increases greater than the inflation rates.

The result of these measures was felt, for example, in the growth of retail sales: in October, these sales presented a nominal increase of 53.1% (19.1% in real terms) in São Paulo and of 52%

Octávio Gouvêa de Bulhões
Minister of Finance
in the Castello Branco Government

"The keynote of the government's economic policy, in the next year, in my opinion, should be to combat inflation, because, besides helping the balance of payments, it would also help the growth of the GNP."

João Paulo dos Reis Velloso
Minister of Planning

"What is going to be attempted in 1976 is to place the balance of payments under control, with a minimum deficit in the trade balance and to, simultaneously, arrive at a reasonable growth in the GNP and a sensible decline in the rate of inflation."

"The government has to really aim at conciliating the diverse social objectives. The above decision stems from the idea that it is desirable to preserve the level of reserves and foreign credibility. This means practically not having a deficit in the trade balance, in order that the fluid entrance of capital can finance the services deficit. In this way, it will be possible to have more relaxation in 1977."

"On the growth side, it will be necessary to stimulate sectors which depend little o imports, like civil struction, agriculture and the non-durable consumer goods industry. This, together with the programs for import substitution in the area of basic imputs and capital goods, should maintain the level of activity in considerable ascent ..."

“As for the inflation, it will be very important to obtain large crops of the agricultural products, which will help to decelerate the increase in food costs."

"... To invest is very good since it does not hurt the balance of payments. And investment is better yet if it generates employment."

"... one word of advise to the businessman: do not be afraid of 1976. There will be difficulties, but balance will be maintained and the result will be reasonable."

Hélio Beltrão
Minister of Planning
in the Costa e Silva administration

... the crisis in the balance of payments ... should be considered by everyone, despite the unexpected increase in the prices of petroleum. Every time that the country grows at very high rates, for many years, there is a lack of control in imports. Therefore, in many ways, this crisis is constructive. First, because it forces a halt to revamping. Furthermore, because we had other crises in the balance of payments which had highly positive consequences for the country.”

"The first consequence of this crisis (in petroleum) was to produce a new and inevitable round of import substitution which ... results in an expansion of domestic production and, consequently, in an increase in the capacity for domestic consumption."

"The domestic market is one of the most important cards that we hold. With the stimulation to agriculture, we will be creating jobs, resolving the problem of supply and keeping the worker in the rural areas, which will mitigate the exaggerated growth of the cities. The civil construction sector also has an important role in the absorption of labor ... Finally, it is necessary to make the expansion of national industry viable, in the sense of intrusting it with a greater responsibility in terms of supplying the domestic market. And I do not only refer to the national industry, but to all industry installed in the country."

"With a stock market in action, it will be possible to transfer resources for it and in this way reduce the process of feeding the inflation, generated, in large part, by the monetary correction of credit."

"The principle advantage of reducing the rate of inflation would be to stimulate investments at a long term, because it is known that risk capital and inflation are antonymous. For this reason, it is necessary to decrease the rate of inflation considerably, not only to increase the confidence of the business community, but also so that the investor feels disposed to acquire long term notes."

"There is no reason for pessimism over the growth of the Brazilian economy in the next few years. I believe that it should maintain good growth rates, even though they will eventually be lower than those of previous years. And I do not believe that the rate of economic growth can be considered bad in itself. In the specific case of Brazil, this reduction is even beneficial, because we have reached a fairly elevated utilization of productive capacity."

Fertilizer industry aims at self-sufficiency

The Brazilian fertilizer industry had an outstanding development in the international sphere during the last decade. Not only did it grow in product volume, but it also reached a certain degree of vertical integration, constructing a series of installations for the manufacture of superphosphates, phosphates of ammonia and other fertilizer compounds. In addition, projects have been developed for the implantation of new factories for phosphoric acid and ammonia. If the planned goals are reached, the industry could become self-sufficient in its supply of basic elements, within the next five years.

In order to have an idea of the scope of fertilizer use, it is enough to point out that the consumption of such products, in the world, increased from 27 million tons, in 1959, to 78 million tons in 1973. These observations and revelations were presented by Brazilian specialists who participated, recently, in an international fertilizer seminar, held in São Paulo, and sponsored by the National Association for the Diffusion of Fertilizers and by ISMA, the world organization for institutions connected with the sector. Foreign technicians have stated that ambitious goals will be reached by South America, especially by Brazil, in the process of agricultural transformation.

Summary

In a summary analysis of the history of Brazilian development, it can be seen that after 1960 more expressive government action was adopted. This action aimed at promoting the harmonious

growth of the national economy, through the establishment of conditions which would allow the agriculture-cattle raising sector to expand at growth rates corresponding to those of industry and services.

According to the engineer-agronomist José Drumond Gonçalves, Brazil began to pay more attention to implementing methods to guarantee the continued progress in the primary sector.

Drumond Gonçalves says that the scheme, put into effect, presupposed, from the beginning, that the development of the activity should grow at rates of 6 to 8% annually. To achieve this goal it was necessary to implement already-proven mechanisms which would encourage greater efficiency in the agriculture-cattle raising sector. Thus, from the beginning of the sixties, greater attention was paid to modern technological procedure.

Within the plan for greater productivity in the primary sector there are two basic considerations: the productivity of the soil and the productivity of the man who works the soil.

In order to attain a progressive improvement in land productivity various programs were put into action, most of them related to the stimulation of agriculture-cattle raising research, to the use of seeds of greater genetic potential, to

the use of fertilizers, to agricultural protection and, finally, to limestone quantities required by the majority of the areas in cultivation.

EMPRAPA (the Brazilian Firm for Agriculture-Cattle Raising Research) is helping to attain a higher level of professional preparation for Brazilian researchers. This is yet another step in the technological development process of national agriculture and cattle raising. In order to stimulate the production of select seeds, Brazil established in a national plan-the National Seed Planwhich aims at strengthening the preparation activity of basic materials and stimulating, through private initiative, the organization of firms which can undertake production and marketing,

sumption patterns and of the development of the cultivated area indicates that in the period from 1960 to 1970, in national terms, usage moved from 11.9 to 29.5 kg of nutrients per hectare, excluding pastureland.

The picture in 1970 showed that the demand showed oscillations which can be explained in terms of the natural adjustments which occurred in supply.

The evolution of the apparent consumption of fertilizers in Brazil presented, in the period from 1965-1974 an average annual geometric growth rate of about 12.8% for the three principal nutrients. On the other hand, in the sixties the average annual rate for nitrates was 16%, for phosphates 11.1% and for potassium 13.7%.

Specialists say that a good way of determining the actual position of the rate of consumption is to correlate it with the growth of the population.

National production

In order to attend to the expanded use of fertilizers, the national industry has made a significant effort for growth, with the support of the Federal Government, which considers it a priority sector and has guaranteed it a series of incentives for its expansion.

At the moment there is no production of potassium fertilizers in Brazil. The reserves, according to Drumond Goncalves, are the subject of a number of research studies.

Regarding the development of the rate of national production for nutrients and of the industrialization of mixed formula mixtures, it is known that the firms located in the principal consumption areas, in the period of 1972-1977, are making sizeable investments to expand productive capacity. Available data indicates that the financial efforts are budgeted at more than US$145 million.

Page 15

A loan in the amount of approximately US$24 million granted by the Banco Nacional do Desenvolvimento (BNDE) will be applied by the Companhia Brasileira de Alumínio (CBA) for the expansion of its industrial unit located in the State of São Paulo, which will produce 80,000 tons annually of primary aluminum.

The expansion project was initially elaborated with the goal of raising from 40 thousand to 70 thousand tons the annual production of the firm. In 1974 the BNDE granted to CBA a CR$87 million loan. With modifications made since then, especially that of the inclusion of an intermediary rolling mill, the capacity of the factory will be elevated to 80 thousand tons per year.

A project of fundamental importance to the expansion of the capital goods industry in Brazil, in terms of avoiding imports and contributing to the influx of foreign exchange credits, has received support from the Banco Nacional do Desenvolvimento Econômico. The bank has approved two loans for Confab Industrial S.A., in a total value of US$24 million.

The loans will be used for the installation of heavy boilers and the expansion of the firm's seamed tubing plant in the State of São Paulo, as well as the perfection of its present technology.

In accordance with the policy of support to the expansion of the activities of the state development banks, which act as financial agents, the Banco Nacional de Desenvolvimento Econômico has granted loans – in a total value of US$20 million-to the States of Paraná, Santa Catarina and Rio Grande do Sul, to increase the capital of the Banco Regional de Desenvolvimento do Extremo Sul (BRDE-Regional Development Bank of the Extreme South).

The capital increase of BRDE will permit financial support to expansion projects of the small and medium-size firms located in the three Southern States of Brazil.

Financing in the amount of US$30 million was granted by the Banco Nacional do Desenvolvimento Economico to Salgema Indústrias Químicas S.A. to be used for the installation of a production unit for chlorine and caustic soda in the State of Alagoas. This unit will utilize raw materials extracted from the beds of Bebedouro, in Maceió.

With the additional resources Salgema will produce, by January 1977, in the first stage, 250 thousand tons/ year of caustic soda and 220 thousand tons/year of chlorine. The project foresees a production of 500 thousand tons/ year of caustic soda and 440 thousand tons/year of chlorine, in its second stage.

In its production Salgema will use the technology and basic engineering of Hooker Corporation of the United States. Construction on the unit began last May and will be concluded in June 1976.

Brazilian exports for 1975 registered between US$8.6 and 8.7 billion, representing a growth of 8% in relation to 1974, when Brazil exported US$7.96 billion in goods. This information was released by the director of CACEX, during a meeting of the Association of Brazilian Exporters in December. The sales of manufactured goods were situated at US$3.2 billion and those of primary products, US$5.4 billion. According to the CACEX director, the fall in the prices of primary products impeded the expected export growth. For 1976 the director predicts that in the first semester the performance of exports will be equivalent to that of the first six months of 1975, with a slight growth expected at the end of the year.

The Ministry of Planning has granted the government of the State of Bahia permission to contract a foreign loan in the amount of US$20 million to help in the financing of three infrastructure projects in that state. These projects are the completion of the Ferry Boat connection between the city of Salvador and the island of Itaparica, the implantation of the Port of Aratu and the creation of physical infrastructure for the petrochemical complex of Camaçari (which will receive 50% of the foreign loan). The overall cost of these projects will be approximately US$100 million.

After 1977 Brazil will hold more than 5% of the present world production of iron powder. This will come about with the entry of the first stage of operations of Polimetal Indústria e Comércio. The firm's project has recently been presented to the Council of Industrial Development of the Ministry of Industry and Commerce and will be implemented in the Industrial Pole of Porto Real, in the Municipality of Resende, in Rio de Janeiro.

Presently the annual world production of iron powder is 240 thousand tons. The new firm - the first of its kind in

The Japanese Government has confirmed that the Light Metal Smelters Association (LMSA), of Japan, is to take up a 49% share in Alumínio do Brasil (Albrás) which is to establish a plant at Vila do Condé, near Belém, with an annual production capacity of 320,000 tons of aluminum. The LMSA is also to contribute US$120 million towards the project, in which the Cia. Vale do Rio Doce will have a 51% participation.

WWW NEW YORK SHOWS IN WHICH BRAZILIAN EXPORTERS

WILL PARTICIPATE IN FIRST SEMESTER OF 1976

Brazil promotes shows for 1976

CVRD begins bauxite project

This year Itamaraty (the Brazilian Ministry of Foreign Affairs) will promote 65 shows all over the world, including general and specialized fairs, industrial expositions and stands for trade information. The chancellery believes that this promotion "constitutes one of the principal instruments used by the Ministry of Foreign Affairs to capture new markets for national products and for the continued expansion of exports."

The shows have been arranged by diplomatic missions and consulates abroad and the objective is to increase the exports of goods and services, contributing to the admittance of foreign exchange credits and a better balance of trade for the country.

The fairs are organized by the Department of Trade Promotion of Itamaraty and they will be distributed in 1976 thusly: 9 in Latin America, 24 in Europe, 22 in the United States and Canada, 7 in countries of the Middle East and North

Africa and 3 in East Africa.

Since 1972, the programs have included the support of sectoral expositions of manufactured products.

Commenting on the extent of this promotion, an Itamaraty spokesman confirmed: "Considering that the fairs and expositions constitute one of the principal and most efficient instruments for the promotion of Brazilian products, Itamaraty, since 1971, has been perfecting its services to the nation's business community and has programmed the support and assistance necessary for the increase of its sales in international markets. The receptibility to such forces is clearly demonstrated by the growing adhesion of the Brazilian exporters to the Itamaraty programs for fairs and expositions. In 1970, 200 firms participated in the official shows of the Department of Trade Promotion. This number in 1975 was elevated to 1226, registering an increase of 51.3% in the last few years."

Companhia Vale do Rio Doce (CVRD) and Alcan Aluminum Limited, co-sponsors of the Trombetas bauxite project in the Amazon Region of Brazil, have announced that construction of the $280 million project will begin this month.

The project will be carried out by Mineração Rio do Norte S.A., a Brazilian consortium company in which Brazilian shareholders, principally CVRD, own 51% and Alcan 19%. Other aluminum producers in the United States, Britain, Norway, the Netherlands and Spain hold the remainder.

The initial planned annual production capacity is 3.35 million metric tons of bauxite for export, of which Alcan will receive 1.2 million tons for its Canadian facilities. Production is expected to begin in 1979 and eventual capacity of more than 8 million tons a year is forecast.

The Amazon River bauxite resources, among the most important reserves in the world, were discovered and proved by Alcan geologists over the past 10 years.

The project will open up bauxite deposits about 200 miles northwest of Santarém, 100 miles up the Trombetas River, an Amazon tributary, with a rail line being constructed to transport the ore. The bauxite will be crushed at the mine site and washed and dried at the riverside shipping point where a townsite for 2,600 persons and port facilities for carriers of up to 50,000 tons capacity will be built.

Two loans, totalling US$14 million, were granted last month by Eletrobrás to be used for electric energy programs in the Northeast of Brazil. The first of them, in the amount of US$11 million, will help complete work on the Pedra plant, in Rio das Contas, in the State of Bahia. The second, going to the State of Alagoas, and totalling around US$3 million, will help in the execution of a program for transmission lines which will attend to the necessities of new industrial installations in the State.

The Pedra plant, which will have a final installed capacity of 20 thousand kilowatts and should function as

emergency plant to assist regional systems, is in the area of the hydroelectric plant of Funil, belonging to the Companhia Hidro Eletrica do São Francisco (CHESF). The financing for it will be used for attending to the growth of the demand for electric energy foreseen when the cement and cellulose industries begin function and when the sugar industry is developed in Alagoas.

The demand for electric energy by the Companhia de Eletricidale de Alagoas (CEAL) should grow at a rate of 22.5% in 1976. Industrial consumption will experience an increase of 44% this year.

BATHROOM FIXTURES, glazed wall tiles, permanent plumbing fixtures for sanitary or hygenic use. Marano S.A., Avenida Conde de Boa Vista 121, Recife, Pernambuco, Brasil. Telephone: 22-2422 or 22-2449.

BATHROOM TOWELS. Desina Exportadores e Importadores Ltda., Rua Cinderela 25, Caixa Postal 30641, São Paulo, S.P., Brasil. Cable: BUSINESS, São Paulo.

BEDROOM FURNITURE. Sena Group International, 103 Park Avenue, Room 1110, New York, New York 10017.

LIGHTING FIXTURES. Osram do Brasil, Companhia de Lampadas Elétricas, Caixa Postal 2997, São Paulo, S.P., Brasil.

ANNOUNCEMENTS COMPANY HEADED by experienced US senior marketing executive, with full-time bi-lingual associate in São Paulo offers services as buying and/or selling agent in Brazil, or arrange joint ventures. JAD Trading Corporation, Astor's Lane, Sands Point, New York 11050. Telephone: 516-883-1077. Attention: Mr. Jerome Entis. BRAZILIAN MANUFACTURER OF LEATHER COATS & JACKETS seeks US agent for distribution of their products. Contact: Sábor Indústria e Comércio de Confecções Ltda., Avenida Protásio Alves 4419, CEP 90.000 Porto Alegre, Brasil. BRAZILIAN FIRM interested in contacting American firms involved in import/export of machinery and equipment. Panambra Industrial e Tecnica S.A., Avenida Senador Quieroz 150, São Paulo, S.P., Brazil. Contact: C. Patricio, Banco do Estado de São Paulo. Telephone: 212-953-7200.

ANHYDROUS ALCOHOL for industrial use. Intercâmbio Comércio, Importação, E Exportação Ltda., Caixa Postal 12.875, 01.000 São Paulo, S.P., Brasil. Telegram: ENTERPRISE, São Paulo.

PHENOL, distilled, diphenyl flakes, furfural acetone resin, phosphoric acid, stearic acid (double pressed). Saboia Corretores Ltda., Rua Teofilo Otoni 58, Caixa Postal 711-2C-00, Rio de Janeiro, RJ, 20.000 Brasil. Cable: RIOSAB, Rio de Janeiro. Telex: 2122490SABO BR.

TRUCKS, automobiles, station wagons; auto parts. Redimex Exportação Limitada, Avenida Casper Libero 383, 8° andar, conjunto 8-C, São Paulo, S.P., Brasil. Cable: REDIX. AUTO ACCESSORIES. Metalúrgica Estribocar Indústria e Comércio, Rua Santa Leocádia 159, Caixa Postal 12153, Vila Izolina Mazzei, São Paulo, S.P., Brasil.

BRAZILIAN GOVERNMENT TRADE BUREAU A Department of the Brazilian Consulate General in New York

551 Fifth Avenue, New York, N. Y. 10017 (212) 682-1055

EASY CHAIR of hardwood and leather. Galeria de Móveies Coloniais, Estrada das Lágrimas 2028, São Caetano do Sul, CEP 09500, São Paulo, S.P., Brasil. LAMINATED WOODS. A. Rubens de Oliveira, Rua 14 de Julho 1025, Campo Grande, Mato Grosso, Brasil. BATHROOM CABINETS AND FRAMED MIRRORS. Alba Indústria e Comércio Ltda., Rua Itajubá 697, Belo Horizonte, Minas Gerais, Brasil. PLASTIC PRODUCTS for decorative purposes. Cia. Industrial de Plásticos (CIPLA), Avenida Getulio Vargas 1619, Caixa Postal D-70, Joinville, Santa Catarina, Brasil. UPRIGHT PIANOS. Pianofatura Paulista S.A., Avenida Raimundo Pereira de Magalhães 5028, Caixa Postal 3428, São Paulo, S.P., Brasil. Cable: PIANOFATURA.

Information on Brazil can also be obtained from:
Brazilian Embassy, 3006 Massachusetts Ave., N.W., Washington, D. C. 20008

(202) 797-0100
Brazilian Consulate General, 630 Fifth Avenue, New York, N. Y. 10020

(212) 757-3080 Brazilian Consulate, 3400 Montrose Boulevard, Houston, Texas 77006

(713) 526-3941 Brazilian Consulate General, 2 Canal Street, New Orleans, La. 70130

(504) 525-9874 Brazilian Consulate General, 20 N. Wacker Drive, Chicago, III. 60606

(312) 372-2176 Brazilian Consulate General, 5900 Wilshire Blvd., Los Angeles, Calif. 90038

(213) 937-4044 Brazilian Consulate, 100 N. Biscayne Blvd., Miami, Fla. 33132

(305) 377-1734

TRAILERS FOR ALL TYPES OF CARGO, DUMP TRUCKS. Randon S.A., Indústria de Implementos para o Transporte, Rua Matteo Gianella 527, 95.100 Caxias do Sul, Rio Grande do Sul, Brasil. PIG IRON for the steel industry. J. Torquato Comércio e Indústria, Avenida Presidente Vargas 417-A-5°, Rio de Janeiro, RJ, Brasil. INDUSTRIAL GLOVES. Confil, Confecções Industriais Ltda., Estrada do Brejo 723, Linha do Tiro, Recife, Pernambuco. Telephone: 28-3020. WOODEN SPOOLS for steel, aluminum and copper wiring and cables; and for telephone cables and wires. Madem S.A., Ind. e Com. de Madeiras e Embalagens, Rua Vitória 8, Caixa Postal 206, 95.700 Bento Gonçalves, Rio Grande do Sul, Brasil. Telephone: 22-1511. VALVES for refrigeration and air-conditioning: expansion, solenoid, bellows, check, tank valves; also, pressure controls, hot-wire relays, filter driers, oil separators and other products for refrigeration circuits. Fligor S.A. Indústria de Válvulas e Componentes Para Refrigerção, Rua Fernandes Moreira, 1293, Santo Amaro, São Paulo, São Paulo, Brasil. Telephone: 2478005. Telegraph: FLIVAL. SHELLAC, type "Limão" (vegetable origin, with melting point of 84°C). Indústrias Químicas Carbomafra S.A., Rua Mal. Floriano Peixoto 2684, Caixa Postal 6.208, Curitiba, Paraná, Brasil. Telephone: 24-2234. Cable: CARBOMAFRA.

SISAL. Moreira, Irmãos & Cia. Ltda., Rua Cons. Dantas 32, Caixa Postal 995, Salvador, Bahia, Brasil. SISAL. Antenor Cavalcanti, Avenida Rio Branco 126, 2° andar, sala 4, Caixa Postal 369, Recife, Pernambuco, Brasil. SISAL. Fibroco Industrial e Somercial de Fibras Ltda., Avenida Rio Branco 4724, ZC21, Rio de Janeiro, RJ, Brasil. SISAL. Antonio Paulino Filho, Rua Pe. Inácio de Almeida 260/284, Guarabira, Pernambuco, Brasil. SISAL. EXPAN, Exp. de Produtos Agrícolas do Nordeste Ltda., Avenida Pe. de Almeida 268/284, Guarabira, Pernambuco, Brasil. PERCUSSION INSTRUMENTS. Overseas, Caixa Postal 8825, São Paulo, S.P., Brasil. COPPER HIGH-RELIEF ENGRAVINGS, in several sizes and themes), copper engraved greeting cards. Bienal Artefatos de Metais Ltda., Estrada do Rio Bonito 2477, Santo Amaro, São Paulo, Brasil. PHYSIOTHERAPEUTIC OFFICE CHAIRS. Overseas, Caixa Postal 8825, São Paulo, S.P., Brasil. Telex: 1122801-JDAN-BR. Cable: Sevenseas.

COPPER HIGH-RELIEF ENGRAVINGS, in several sizes and themes, copper engraved greeting cards. Bienal Artefatos de Metais Ltda., Estrada do Rio Bonito 2477, Santo Amaro, São Paulo, Brasil. ANIMAL COLLARS, also rawhide dog chews. TACOLAC Indústrias Químicas Ltda., Rodovia Campinas, Aguas da Prata, Km. 52, Caixa Postal 20, Mogi-Mirim, São Paulo, Brasil. TOOTHPICKS. SB Promoção de Exportação S/C Ltda., Caixa Postal 4694, CEP 0.1000 São Paulo, S.P., Brasil. ZIPPERS. Companhia Brasileira de Metais, Rua Cons. Justino 437/505, Caixa Postal 7113/4838, São Paulo, S.P., Brasil. Cable: ZIPEREOR. Telephone: 93-1121. POPSICKLE STICKS. Henrique Bergel S.A. Ind. de Balas Soberana, Rua Bento Gonçalves 602, Caixa PPostal 10, Ijuí, Rio Grande do Sul, Brasil. HAIR STRAIGHTENING GEL, shampoo, cream rinse. BRASEX Exportação Importação Ltda., Rua Santo Amaro 197, 20.000 Rio de Janeiro, Rio de Janeiro, Brasil. BRAZILIAN BOOKS. Livraria Antiquaria, Bruno Basseches, Rua São Carlos do Pinhal 269, São Paulo, S.P., Brasil. STATIONERY. Domus Representações Ltda., Avenida Sabiá 252, CEP 04515, Ibirapuera, São Paulo, S.P., Brasil. NYLON FISHING LINES & NETS. Artefatos de Pesca do Nordeste S.A., ARTEPESCA, Rua Diário de Pernambuco 28, 5° andar, 50,000 Recife, Pernambuco, Brasil. AMPLIFIERS. Nivel Representações, Rua 24 de Maio 116, 2° andar, sala 17, Caixa Postal 8136, São Paulo, S.P., Brasil. PIRANHA, perfectly preserved, small, medium, large and giant sizes. Richard Melnyk, Caixa Postal 86, Manaus, Amazonas, 6900 Brasil. DOG & CAT FOOD. Brasil Export International, Caixa Postal 963, Rio de Janeiro, Rio de Janeiro, Brasil. CARBON PAPER. UMACOL Nordeste Indústria de Papel Carbono S.A., Rua Tobias Barreto 289, 1° andar, conjunto 103, Recife, Pernambuco, Brasil. Telephone: 24-4066 & 24-4038. BRUSHES & BROOMS in general. Weinberger Indústria de Escovas Ltda., Avenida Jõao Dias 1431, Santo Amaro, São Paulo, Brasil. Telephone: 247-0892. PHOTOELECTRIC LIGHTING CONTROL for street lights, model D2A 71. Stieletronica. Sociedad Tecnica de Iluminação e Eletronica Ltda., Avenida Itaoca 2086, Rio de Janeiro, Rio de Janeiro, Brasil. Telephone: 260-0232, 260-0272, 260-7473 or 2607765. Cable: LUXCONTROL.

COTTON KNIT FABRIC for blouses and shirts. Danylon Indústria de Malhas Ltda., Rua Tocantins 95/107, São Paulo, S.P., Brasil.

WEARABLES STERLING SILVER JEWELRY. Irmãos Gius- tino Ltda., Rua Candido, Vale 291, São Paulo, Brasil. Telephone: 296-0544.

SISAL. Braga & Cia. Ltda., Avenida Frederico Pontes, 5A, Salvador, Bahia, Brasil. SISAL. Inds. P. Maggi S.A. Cordas e Barbantes, Rua da Várzea 230, Caixa Postal 399, ZC-23, São Paulo, S.P. Brasil. SISAL. Dário Gonçalves Pastor, Rua Miguel Calmon 37, 8o andar, sala 803, Caixa Postal 1027, Salvador, Bahia, Brasil. SISAL. Norkai Import Export. Ltda., Avenida Estados Unidos 24, Ed. Cidade do Salvador, 3° andar, Ss/304/5, Salvador, Bahia, Brasil. SISAL. Theocrito Calixto Com. e Ind. de Sisal Ltda., Rua Cons. Dantas 8, sala 210, 2° andar, Caixa Postal 439, Salvador, Bahia, Brasil. SISAL. C. Rosas & Cia. Ltda., Rua João Suassuna 58, Caixa Postal 115, João Pessoa, Pernambuco, Brasil. SISAL. Cia. Industrial do Sisal (CISAL), Avenida Liberdade 912, Bayeux, Pernambuco, Brasil. SISAL. E. Gerson S.A. Com. e Representações, Rua Cel. Lima Mindelo 27, Caixa Postal 8, João Pessoa, Pernambuco, Brasil. SISAL. Orlando Gonçalves Guerra, Rua Dr. João Tavares 483, Campina Grande, Pernambuco, Brasil. SISAL. Pedro Paulino Batista, Rua Solon de Lucena 81, Sapé, Pernambuco, Brasil.

MISCELLANEOUS NATURE'S FLOWER POT and lamp shade. Giant nutshell. Average 8” in diameter. A natural for macramé hangings. Richard Melnyk, Caixa Postal 86, Manaus, Amazonas, 69000 Brasil. NATURE'S NAILFILE: scale of the giant pirarucú fish, natural abrasive surface, finer than an emery board. Richard Melnyk, Caixa Postal 86, Manaus, Amazonas, 69000 Brasil. RED GRANITE, green granite. Sociedade de Mineração Brasileira Ltda., Avenida Paulista 491, andar 7, conjunto 71, São Paulo, S.P., Brasil. NATIONAL, international flags, all types and patterns. Banderart Indústria e Comércio de Bandeiras Ltda., Rua Dr. Jacy Barbosa 505, São Paulo, S.P., Brasil. WOODEN FURNITURE for offices, motels, hotels. Indústria e Comércio de Móveis Ltda., Rua Bento Freitas 454, 01220 São Paulo, S.P., Brasil. SAUNAS. Trivial Indústria Comercio Ltda., Rua Miguel Couto 134, Grupo 804, Rio de Janeiro, RJ, Brasil. PERCUSSION INSTRUMENTS. Overseas, Caixa Postal 8825, São Paulo, S.P., Brasil.

REPUBLICATION Bonafide news media may repubTish any or all of the material in this Brazilian Bulletin, though a creditline is requested.

Brazil is making its debut in the US specialty car market with a replica of the 1952 MG TD.

MG is celebrating its golden anniversary this year. In the late 1940's MG introduced its T Series, which was sponsible for ushering in the sports car craze in America.

With this thought in mind, Lafer S.A. Indústria e Comércio, Brazil's leading furniture manufacturer, selected the classic MG TD as their initial endeavor in the replica field.

When the car was shown at the Brazilian Auto Show in December 1974 it was an immediate success and to date more than 500 have been sold in Brazil and projections call for over 3000 over a three-year period.

Lafer S.A. has appointed International Development Service, Inc., of Cherry Hill, New Jersey, as the exclusive US importer for Lafer Automotive Products.

Milt Lafair, President of International Development Service, said, "The car will be sold in the US under the name ‘Spinnaker', which is defined as a triangular sail, used for racing when running before the wind."

Due to the demand and the fact that the car is hand-built, there will be a limited number of cars for the US market.

Lafair said, “In designing a replica the secret is to make it the way you remember the original, but not the way it really was." It took the Lafer designers almost two years to produce a flawless master mold. They combined the reliability and performance of the Volkswagen with their esthetic interpretation and craftsmanship to create the "Spinnaker".

The "Spinnaker" has a one-piece fiberglass body with turned edges and double-wall construction to the hood, engine compartment and doors. The body contains considerably more fiberglass than is normally found in specialty

This gives the car additional strength, quietness and stability. The body has two hand-rubbed finishes atop three coats of primer and seven coats of paint. It is sealed with a clear lacquer.

Accentuating the car are chrome headlights, a simulated grill and a luxurious interior featuring genuine leather seats and a leather-covered, racing, steering wheel. The water-repellant top can easily be raised or lowered from inside the car.

The glass windows on the door have a tension bar, which allows them to be manually raised or lowered. All windows are removable and can be stored in the trunk. The windshield is collapsible.

Having a length of 154 inches with a 94.5 wheel base, the "Spinnaker" is 62 inches wide and have a gross vehicle weight of 2055 pounds. Equipped with a 4-speed, synchronized transmission the "Spinnaker" will go from 0 to 50 MPH in 12 seconds and gets an estimated average of 22 miles per gallon.

The "Spinnaker" is available as a complete car using a 1600 CC, 4-cylinder, 60 Horsepower, air-cooled, remanufactured Volkswagen engine for USS7995 P.O.E.

Lafair said, "The 'Spinnaker' is also available as a pre-assembled kit for $4595 P.O.E. It includes a new Brazilian chassis, which is adaptable to a 1967 or earlier Volkswagen engine."

The "Spinnaker" was recently viewed by the American public at the Greater New York Auto Show.

In the January 1976 issue of the magazine Dune Buggies & Hot VW's Martyn L. Schorr states, “What impressed us about the Spinnaker test car was that the overall feel, performance and construction was of a quality usually not associated with any under $10,000 cars currently available."

For further information on the "Spinnaker" contact: International Development Service Inc., 1308 Landmark Two, Cherry Hill, New Jersey 08034. (Telephone: (609) 795-2300)

Page 16

State of Minas Gerais is focus of seminar

The Agribusiness Investment Forum on Brazil held in January in New York put a special focus on the State of Minas Gerais. Representatives of the State Development Bank, the Ministry of Agriculture and the Industrial Development Institute were present and they discussed the wide range of investment opportunities in Minas Gerais.

The Government of Minas Gerais has offered a number of financial and fiscal incentives, including tax exemption and credit lines, in order to stimulate the development of certain regions and sectors of the state economy.

Apart from these incentives, the government has sought to improve worker training through the creation of specific programs and special schools.

In order to offer industry a complete assistence program, a number of agencies were created solely for the purpose of aiding project implantation.

In addition to incentives offered by the State, the Federal Government offers incentives, including those specifically applicable to the SUDENE area of Minas Gerais, tax credits and exemptions and those applicable to the export of manufactured goods.

SUDENE (Superintendency for Development of the Northeast) offers financing for industries with projects needed in the region of Minas Gerais under its jurisdiction, in accordance with such factors as location, type of products, number of new jobs created, etc.

The BDMG (Development Bank of Minas Gerais) operates throughout the State, channelling financial incentives and resources to industries with interest rates which vary according to the type of project.

INDI (Industrial Development Institute of Minas Gerais) is a non-profit organization supported by the state power utility, CEMIG, the Development Bank of Minas Gerais (BDMG), and the João Pinheiro Foundation (FJP).

Created in 1969, INDI's main purpose is to speed up the state's industrial development through systematic research of the State's industrial opportunities and by providing full assistance to investors interested in industry expansion or implementation in Minas Gerais. Simultaneously, INDI provides assistance to the State Government for the planning and implementation of its industrial development policy.

Entrepreneurs contemplating investment in Minas Gerais should contact INDI. The type of assistance available through INDI includes: complete information on the economy of Minas Gerais through its Data Bank; market and feasibility studies on more than 200 industrial opportunities in the State; followup, in the governmental area, on the investor's application for financing, fiscal incentives, industrial sites, tax exemption, etc.

sites, tax Minas Gerais has modernized its agri- and dairy products. The State also has cultural activities greatly thanks to mas- one of the largest swine herds in Brazil, sive investments and programs estab- totalling about 5 million head. Currently, lished by the Government, aimed at about US$32 million is being invested human resources, schooling and fiscal in beef cattle operations in Minas and financial incentives for the agri- Gerais, both by State and Federal cultural industry.

agencies. Labor productivity and production Minas Gerais is also to be found capacity have increased considerably. among the three leading national proFar-reaching integrated projects forming ducers of poultry, coffee, rice, corn, agroindustries have contributed to the

beans, sugar-cane and garlic. Soybean improvement of product quality. The and sorghum production have grown agroindustrial production of Minas significantly over the past 5 years. In Gerais accounts for 21% of the indus- 1969, only 5,000 hectares were cultivated trial production of the State and 7% of with soybean – in 1973, this figure had the agroindustrial production of Brazil. reached 55,000 hectares.

Through special financing and tech- The advantages offered by the State nical assistance programs, several of the as a location for agroindustrial projects traditional industrial fields are being re- can be summed up thusly: strategic loorganized and modernized, such as cation regarding the principal Brazilian slaughterhouses, dairy operations and consumer markets; easy access to the sugar mills. New integrated projects are main ports of Brazil, thanks to the highbeing implemented for cotton (fiber and way and rail networks; climatic, toposeed), vegetable oils, hogs, poultry and graphical and soil conditions enabling a planned utilization of forest reserves. wide variety of livestock and crops to

Minas Gerais is one of the national be grown; and a favorable investment leaders in the production of beef, milk and incentive climate.

The Development Bank of Minas Gerais (BDMG) was founded in 1962 and it integrates all official organizations which promote development in the State. BDMG operates as a link between government policies and business ventures, giving special support to projects which involve: a long maturation period, high pioneering risk, declared intention to break through presently bottlenecked areas and, above all, projects which make a contribution toward solving social problems.

In 1975 the Bank approved operations in the sum of US$327 million, corresponding to the financing of 770 projects, benefitting the rural, mineral and industrial sectors,

The strategy adopted by the Bank in the rural area takes the form of support to the area at the level of innovating projects, seeking modernization and the spreading of rural business, based on the principles of technology and administration, emphasizing technical assistance and the planned use and conservation of natural resources.

In the case of livestock, besides the aforementioned assistance, there is a gua "Be of Rural Insurance, pioneered hy the Bank in 1973. au iming at the coverage of unfore

seen risks due to unpredictable meteorological phenomena, to damage occurring from sickness and plague where treatment is not feasible.

The BDMG is presently executing the following programs in the State of Minas Gerais: • Program for the Development of "Cerrados"

(POLOCENTRO) • Program for the Coordinated Settlement of Alto

Paranaíba (PADAP) • Livestock Development Program (PRODEPE) • National Program of Pasturage (PRONAP)

Program for Rural Forwarding Agencies • Program for the Development of Swine Breeding • Forest Development Program • National Storage Program

These programs were implemented for the fulfillment of four basic objectives: expansion of the agricultural frontiers; production and productivity increase; increase and better distribution of modern supplies; general support for agricultural development.

Page 17

Containers facilitate the transport of goods

The national firms are utilizing foreign "know-how”, notably Swedish, German, Japanese and American.

In the last fifty years, with the development of industrial production and the subsequent increase in world trade, especially after the Second World War, there emerged a greater concern over packaging, transport and storage. New methods were sought to save manpower, economize time and avoid waste in transporting products from one place to another.

The answer to the problems inherent in transport came twenty years ago with the introduction of containers in Japan, the United States and Europe. Nowadays, the use of containers has spread to the developing countries. The container is the model of rational packaging. It is economic and versitile and has caused a veritable revolution, giving the transporter a method to move raw materials and finished products, which makes the best use of space, reduces labor costs, saves time, eliminates idle cargo and minimizes the damage and loss found in conventional packaging.

After 1973, the increase in the price of paper and petroleum made the rational transport of cargo by containers imperative. Due to its relatively expensive cost, traditional paper and cardboard packaging is progressively giving way to its competitor, the container, and the substantial increase in the price of petroleum is being compensated for by using the new system to its maximum potential.

The need for rational transport is even more pressing in those countries, like Brazil, which have greater dependence on highway transport, a large consumer of petroleum

by the installation of the system in a very short time after implementation.

The Brazilian container industry is optimistic. The national market is expanding rapidly and the percentage of cargo transported by containers in certain sectors (products in grain or powder) is already high.

Up to 1967 all the containers used in Brazil had been imported. Today the Brazilian container industry is supplying national demand and is already exporting

While the Brazilian container manufacturers are not yet completely exportoriented, they have had requests from various countries in Latin America, Africa and Europe.

Sansuy, with a plant in Embú, São Paulo, has done some business with Latin American and African countries and this year the firm intends to make a stronger move into the foreign market.

Kelson's, with a factory in the city of Rio de Janeiro, has made some deals and has recently sold 700 containers to the African nation of Mauritania. These containers will be used by the Brazilian contractor Mendes Júnior, which is constructing a 600 km. highway there. Nigeria has also approached Kelson's with interest in purchasing Brazilian containers.

Brazil's container industry produces mostly flexible containers, nowadays the most popular, made of a polyester fiber, and used mainly for the transport of products in grain or powder.

The three major firms in the sector depend on the experience gained through the regular export of the other products of their manufactured lines.

Together, Sansuy, Kelson's and Pissoli hold the absolute majority of the national production of containers.

Besides Sansuy, which has manufactured containers since 1967, and Kelson's and Pissoli, which are manufacturing for four years now, there are Remae Indústria e Comércio Ltda. (São Paulo), manufacturers of flexible containers and grain elevators; SAEF S.A. de Equipamentos Ferroviarios (factory in Botucatu in the interior of São Paulo), which produces steel containers; and other smaller companies.

Sansuy – pioneer in the manufacture of containers in Brazil – began by producing plastic hoses, exporting them regularly to Latin American markets and some countries in Africa. After 1967 the firm began to produce flexible containers and its present production is one thousand units per month.

The Sansuy container, called the "Vinicon Sansuy", which uses Japanese "know-how", has had excellent results in the transport or storage of cereals, rations, fertilizers, cement, lime, chalk, coal, salt and many other dry or pow

The concern of the Brazilian transporter over modernizing the packagingtransport-storage system is fairly recent.

In Brazil, the use of containers, especially of flexible containers, has increased in the last ten years. But the cost of the installation of the new system, combined with a conservative mentality (now being shaken by the petroleum crisis), has kept small and medium-sized Brazilian businesses from using the container. To aid in a greater use of the container system, Indústria e Comércio Pissoli S.A., São Paulo, manufacturers of steel and pliable containers, offers complete assistance in the construction of the installation, in order to help reduce the cost. The use of the container repays all the expenses incurred

- dered, pelletized or granulated products.

It can be used in transport within the country or in transport abroad. It is

light and pliable, allowing easy and safe $handling and it occupies little space.

Made of a polyester fiber, with a PVC base, it has a high resistance, with greater rigidity and less chance of expansion or shrinkage. The container is completely water-proof and it is immune to the action of chemical products, fungus and ultra-violet rays. Manufactured in various sizes and models (over one ton) the "Vinicon Sansuy" can also be made to order, depending on the particular needs of the client.

Research studies done in West Germany, Switzerland and Japan point to the advantages of the "Vinicon Sansuy" containers over the conventional ones.

Sansuy, which at present is manufacturing inflatable storage tents, is in an expansion phase, and plans to invest US$2,500,000 after this year. The firm already exports hoses and other products regularly and is actively preparing to export containers and inflatable stor

age tents. In the past few years it has y participated in expositions in Brussels,

Algiers, Palermo, Tehran, Santa Cruz de la Sierra (Bolivia), Guatemala and others.

Kelson's, with two factories in Rio de Janeiro (one for only containers). produces a diversified product line for the domestic and foreign markets. Utilizing the labor of 3500 workers the firm produces linings for tunnel ventilation in all sizes, ballasts for airplanes and pliable water tanks. For three years now Kelson's has been manufacturing flexi

ble containers, the "Keltainers", made of Trevira fibers (polyester high resistance fibers produced by Hoechst), coated with PVC. Using the know-how of the German firm Walter Krause, which for more than 10 years has produced flexible containers in Europe, Kelson's is producing a model in the form of a square box, without internal rigid supports and ideal for the transport of grains and powders.

Indústria e Comércio Pissoli S.A., traditional manufacturer of the "Pissoletro” automobile roof, well known even abroad, began to manufacture containers four years ago, using the know-how of Big Bag of Sweden, which has plants in 12 European countries.

In their containers line Pissoli manufactures the "Big Bag Pissoletro" in steel, stainless steel or aluminum, according to buyer specifications, in various sizes, for cargo of 1 to 2 tons. The containers are coated with a highly-resistant epoxy paint inside and out. They are ideal for the transport or storage of products in powder form, in grain or liquid.

The "Big Bag Pissoletro" is made of a Trevira polyester fiber coated with PVC. Experiments done in Sweden showed that this flexible type of container lasts an average of 10 years and can resist 200 trips.

Although it has done some business with other countries, like Chile and Argentina, Pissoli believes that in the sector of containers, there is no more attractive market than that of Brazil and for this reason the firm is dedicated almost exclusively to the domestic market.

Flexible Storehouses

The modernization of the packagingtransport-storage system moved a step ahead in Brazil recently with the manufacture of flexible storehouses.

There are two plants: the Sansuy, which using Japanese know-how, manufactures the "Vinimazem" made of plastic PVC canvas, and CIFA (Cia. Industrial de Fios e Armazéns), part of the Tupi Group of Santa Catarina, which after manufacturing fibers for years became interested in flexible storage tents of Trevira fibers, in sizes of 1000, 1200 and 1400 m2. The "Ciflaflex" storehouse, manufactured 6 months ago, resulted from 2 years of studies done in Germany, the United States and Japan. It has a rectangular form and is mounted to the bottom by an anchor system and reinforced with a rim within and without.

Both the "Vinimazem" of Sansuy and the "Cifaflex” of Cifa use the most advanced construction materials available. Prospects are excellent and the two firms are prepared to attend to the domestic market, as well as export. Cifa, which has been manufacturing the storehouses for less than 6 months, has done an extensive study of the markets in Latin America and is impressed with the potential.

The firm, which is located in the ininterior of São Paulo State, after next year will be using an area 20,000 m2 in Santo André, São Paulo, exclusively for the manufacture of the Cifalex storage tents.

ELECTRICAL HOUSEHOLD APPLIANCES (refrigerators, freezers, sewing machines, irons). Toni Perry Comercial Exportadora Ltda., Caixa Postal 20578, Rua Baronesa de Itu 67, andar 3, 01221 São Paulo, S.P., Brasil.

DISC BRAKE PADS, auto parts and accessories. Brasil Trading Exporting Ltda., Rua Senador Dantas, 45B, Grupo 4401, ZC06, Rio de Janeiro, Rio de Janeiro, Brasil. CARS & PARTS. Volkswagen do Brasil S.A., Via Anchieta Km. 235, São Bernardo do Campo, São Paulo, Brasil. Telex: 023803. Telephone: 43-1988. REPAIR PARTS. CIP, Companhia Industrial de Peças, Rua Barão de Ladário 890, São Paulo, S.P., Brasil. Telephone: 227-3967, 228-1455 or 92-2352.

ANNOUNCEMENTS BRAZILIAN FIRM seeks American investors to enter into joint venture for swine breeding and slaughter, with a maximum 50% participation offered for the American partner. Contact: Mr. Antonio Variola, Moinhos Cruzeiro do Sul S.A., Praça Oswaldo Cruz, 15, conjunto 1308, Caixa Postal 2606, 90.000 Porto Alegre, Rio Grande do Sul, Brasil. Telephone: (0512) 24-773/38. COMPANY OFFERS complete assistance to executives on business trips to Brazil (offers, bi-lingual secretaries, interpreters) and services as buying agents. EMESSE S.A., Avenida Paulista 1159, sala 1210, 01311 São Paulo, S.P., Brasil (Telephone: in New York, (212) 582-9119). BRAZILIAN FIRM offers services as representative for national and foreign firms. Incentiva Comércio, Importação e Exportação Ltda., Rua Frei Caneca 1407, 8° andar, conjunto 818, São Paulo, S.P., Brasil. ASSISTANCE TO EXECUTICES IN BRAZIL. Office offers all facilities for people on business trips. (Services by day, week, or month; bi-lingual staff, messenger service, interpreters; general guidance to living and working in São Paulo). Great Start Ltda., Caixa Postal 6038, Praça da Republica 177, conjunto 111, São Paulo, S.P., Brasil. Telephone: 34-3245. Cable: Greatstart, S.P., Brasil. BRAZILIAN FIRM OFFERS services as buying agent in Brazil. Quasar Administração, Planejamento e Representações Ltda., Rua 5 de julho 98, 03281 São Paulo, S.P., Brasil. LAWYER, American, trained in Brazil, offers counsel to US firms. Morris Schlesinger, Avenida Presidente Vargas 633, grupo 2108/9, Rio de Janeiro, RJ, Brasil. BRAZILIAN COMPANY wishes to contact American firms that manufactures containers. Contact: Hemitrade S.A. Exportação e Importação, Rua do Ouvidor 87-A, 5° andar, Caixa Postal 2366, Rio de Janeiro, RJ Brasil. BRAZILIAN FIRM seeks American manufacturer of formula for pig and poultry feed, fertilizers, insecticides, etc., which would be interested in granting representation or making license agreement to manufacture said products in Brazil. Contact: COGIL, Comércio Geral e Importação & Exportação Ltda., Rua Luiz Coelho 162, CEP 01305, Caixa Postal 22.116, São Paulo, S.P., Brasil. Cable: COGILEXPORTA. Telephone: 288-0819.

AUTOS & AUTO PARTS VOLKSWAGEN & MERCEDES truck parts and accessories; 0.E.M. and complete replacement like, consolidated shipments. V.M. Vendas Marketing & Trading S.A., Al. Nothmann 611, 01216 São Paulo, S.P., Brasil. Telephone: 221-4599. Telex: 1122704. Cable: EXPORTSALES. GEAR for gear boxes. Motogear S.A., Indústria de Engrenagens, Rua Guaipá 729, Vila Leopoldina, Caixa Postal 11.514, São Paulo, S.P., Brasil. Telephone: 260-8907, 252-0756. Attention: Sergio Grostein. BRAKE LININGS, disc pads. Lonaflex, Caixa Postal 9252, Avenida dos Suonomistas 896, Osasco, São Paulo, Brasil. LIGHTING EQUIPMENT, i.e., beams and headlights, for vehicles. Metalúrgica Rossi S.A., Caixa Postal 12.841, 04137 São Paulo, S.P., Brasil. DIESEL MOTORS, also mini-tractors, motorized sprayers. Cia. Yanmar Distribuidora de Máquinas, Caixa Postal 542, São Paulo, S.P., Brasil. TRAILERS, trailer trucks, buses, loading beds, dump trucks. Grupo Industrial Rodoviária, Departmento de Exportação, Rua Mateo Gianella 1442, Caixa Postal 145, 95.100 Caxias do Sul, Rio Grande do Sul, Brasil.

DECOR BATHROOM TOWELS. Desina Exportadores e Importadores Ltda., Rua Cinderla, 25, Caixa Postal 30641, São Paulo, S.P., Brasil. Cable: BUSINESS, São Paulo. LIGHTING FIXTURES. Osram do Brasil, Companhia de Lampadas Elétricas, Caixa Postal 2997, São Paulo, S.P., Brasil. ORNAMENTAL FLOWERS. Caetano Nascimento Mascarenhas, Caixa Postal 725, Avenida Amazonas 8400, Belo Horizonte, Minas Gerais, Brasil. Telephone: 33-0026. BATHROOM FIXTURES. Ciadamar S.A. Indústria e Comércio, Rua Bom Jesus de Pirapora 3383, Caixa Postal 45, Jundiai, São Paulo, Brasil. Telephone: 2074 or 2075. Telex: 445.3105. Attention: Mr. Miguel May. IMITATION ANTIQUE CLOCKS, alarm clocks, wall clocks. CONEXPRO Agência de Comércio Exterior Ltda., Caixa Postal 7441, 80.000 Curitiba, Pernambuco, Brasil. BEDS. Indústria e Comércio de Móveis Dircilda Ltda., Rua Regente Feijo 345, Santo André, São Paulo, Brasil. Telephone: 4496499 or 449-6604. BATHROOM CABINETS & FRA ED MIRRORS. Antonio de Paula, Rua Guaranésia 314, apt. 31, 30.000 Belo Horizonte, Minas Gerais, Brasil.

BRAZILIAN GOVERNMENT TRADE BUREAU
A Department of the Brazilian Consulate General in New York

551 Fifth Avenue, New York, N. Y. 10017 (212) 682-1055

Information on Brazil can also be obtained from:
Brazilian Embassy, 3006 Massachusetts Ave., N.W., Washington, D. C. 20008

(202) 797-0100
Brazilian Consulate General, 630 Fifth Avenue, New York, N. Y. 10020

(212) 757-3080
Brazilian Consulate, 3400 Montrose Boulevard, Houston, Texas 77006

(713) 526-3941
Brazilian Consulate General, 2 Canal Street, New Orleans, La. 70130

(504) 525-9874
Brazilian Consulate General, 20 N. Wacker Drive, Chicago, III. 60606

(312) 372-2176
Brazilian Consulate General, 5900 Wilshire Blvd., Los Angeles, Calif. 90038

(213) 937-4044
Brazilian Consulate, 100 N. Biscayne Blvd., Miami, Fla. 33132

(305) 377-1734

APPLIANCES HI-FI EQUIPMENT: speaker systems, ampli- fiers, tuners, receivers. Monymar Produtos Eletrônicos Ltda., Caixa Postal 30049, São Paulo. S.P., Brasil. Cable: “Marmony" São Paulo. Telephone: 71-9327. AIR CONDIITIONERS. IPL, Indústria Pere- ira Lopes, São Carlos, São Paulo, Brasil.

Page 18

FLOOR TILES, mosaic cubes. Cerâmica Chirelli S.A., Rua Domingos Brunelli 180, Caixa Postal 8687, Mogi-Guaçu, São Paulo, Brasil. Attention: Mr. Oscar Chiarelli. Cable: CHIARELLI. Telephone: 6-0404. EDIBLES FROZEN FOODS, typical Brazilian dishes, like black bean stew, beef strogonoff, shrimp in Bahia style sauce. Companhia Brasileira de Participação, COBRAPAR S.A. Grupo Ultra, Avenida Brigadeiro Luiz Antonio 1343, 9° andar, B, São Paulo, S.P., Brasil. BEANS, soybeans, corn. C. R. Almedia S.A., Avenida Vicente Machado 1771, Curitiba, Paraná, Brasil. Telephone: 42-3633. Telex: 0415310 or 0415390. CANNED FRUIT & VEGETABLES. Ag S.A. Indústria de Alimentação, Avenida Saldado Filho 641, Caixa Postal 543, Pelotas, Rio Grande do Sul, Brasil. Cable: AGAPE. CANNED SARDINES, canned hearts of palm. Alfonso, Alvara S/C Ltda., Caixa Postal 18, Mogi-Mirim, São Paulo, Brasil. HEARTS OF PALM. Prince Indústria e Comércio Ltda., Avenida Rio Branco 37, grupo 602, 20.000 Rio de Janeiro, Rio de Janeiro, Brasil. CEREALS. Certus Importação Ltda., Avenida Franklin Roosevelt 23, s/lopas 201, Rio de Janeiro, Rio de Janeiro, Brasil. TROPICAL FRUIT. Leão Rodrigues Indústria Comércio e Exp. Ltda., Avenida Padre Almedia Garrett 557, 13.100 Campinas, São Paulo, S.P., Brasil. FOOD PRODUCTS in general. Desina Exportadores e Importadores Ltda., Rua Dinderela 25, Caixa Postal 30641, São Paulo, S.P., Brasil. Cable: BUSINESS, São Paulo. SOYBEAN. Comercial e Depositária Glória Ltda., Rua 15 de Novembro 450, Caixa Postal 84, Paranaguá, Paraná, Brasil. CANNED HEARTS OF PALM. Servi-Trade S/C, Avenida São Luiz 258, 20° andar, São Paulo, S.P., Brasil. Cable: SERVITRADE. Telephone: PBX 257-9633. TEXTILES COTTON, Nylon, Tergal, velvet, garbidine; also bedquilts, bedspreads, pillows. Embaixador Dream S.A., Rua Catarina Braida 276, Mooca, São Paulo, S.P., Brasil. SISAL YARN. Iochpe Trade Comércio Internacional S.A., Rua São Bento 365, 10° andar, Caixa Postal 3702, 01.000 São Paulo, S.P., Brasil. Telephone: (011) 32-9269 or 35-7600 or 33-7072. Telex: 3911 23.173 IOCH-BR. RAYON. Fabril Scavone S.A., Rua João Annes 143, São Paulo, S.P., Brasil. KNIT FABRICS. Associação das Malharias do Nordeste do Estado do Rio Grande do Sul, Rua Sinimbu 1912, Sala 2, Caxias do Sul, Rio Grande do Sul, Brasil. GREY COTTON SHEETING, cotton yarns, printed cotton, dyed cotton. Textil Brasilminas Ltda., Caixa Postal 965, Rua Bahia 360, andar 9, Belo Horizonte, Minas Gerais, Brasil. WOOL POLYESTER, viscose, pure wool, other textiles for men's clothing. S.A. Moinha Santista, Caixa Postal 507, Rua Boa Vista 150, São Paulo, S.P., Brasil.

WEARABLES RUBBER BOOTS, shoes; also, air pumps for footballs, soccer balls, etc. Manufatura de Artigos de Borracha Nogam S.A., Avenida São Gabriel 335, Jardim Paulista, São Paulo, Brasil. JEWELRY, stones; also clocks mounted in agate. Braspedras Comércio e Indústria de Pedras Ltda., Caixa Postal 30017, 01000 São Paulo, S.P., Brasil. LINGERIE. Orbraci Ltda., Rua Constança Barbosa 215, Sala 301, Rio de Janeiro, Rio de Janeiro, Brasil. BATHING SUITS for men and women. Poesi Cia. Sayonara de Roupas, Rua Bolívia 39, Rio de Janeiro, Rio de Janeiro, Brasil. MEN'S & WOMEN'S READY-TO-WEAR. Carvalo & Gomes Repres. Ltda., Rua Ber- nardo Guimarães 1323, Belo Horizonte, Minas Gerais, Brasil. HANDBAGS. Organização Brasileira Co- mércio Imp. Exp. Orbraci Ltda., Rua Con- tançã Barbosa 215, Sala 301, Rio de Janeiro, Brasil. COSTUME JEWELRY, in silver and semi- precious stones, with zodiac signs, charms, etc. Eduardo Joalheiro, Avenida Afonso Pena 748, Sala 1211, Belo Horizonte, Minas Gerais, Brasil. MEN'S FOOTWEAR. Calçados Sandalo S.A., Avenida Brasil, Franca, São Paulo, Brasil. DENIM JACKETS & SLACKS. Group Cidrão Indústria e Comércio de Exportação, Ave- nida Euzébio Matoso 237, São Paulo, S.P., Brasil. MEN'S & WOMEN'S LEATHER JACKETS. EMBRACIL, Empresa Brasileira de Comércio Internacional Ltda., Rua do Riachuelo 42, sala 1005, Rio de Janeiro, Rio de Janeiro, Brasil. FULL-FASIONED KNITWEAR in acrylic, polyester, wool. Antonio Alquati & Cia., Rua Ernesto Alves 1436, Caxias do Sul, Rio Grande do Sul, Brasil. UNDERWEAR. Zorba Indústrias Modasport S.A., Rua Clélia 1382, São Paulo, S.P., Brasil. Telephone: 65-6946 or 62-9709. Attention: Mr. Israel I. Levin. BIKINIS, also bras. Confecções Francesas Reunidas S.A., Alameda Nothmann 708, São Paulo, S.P., Brasil. Attention: Mrs. Guilia Galante. Telephone: 52-6439 or 52-6416. MEN'S WEARING APPAREL. Cia. Orly In- dustrial, Caixa Postal 192, Rua Passos 249, São Paulo, S.P., Brasil. Cable: ORLYH. Tele-

phone: 292-3515 or 93-6591.

WOOD MOLDINGS. BRASEX, Brasil Exportadora Ltda., Caixa Postal 2722, Curitiba, Paraná, Brasil. Attention: Mr. Sedu Branco Junior. Telephone: 22-2911. Cable: BRASEX, Curitiba, Paraná, Brasil. Attention: Mr. Sedu Branco Junior. Telephone: 22-2911. Cable: BRASEX, Curitiba, Paraná, Brasil. LUMBER. Overseas Trading Comércio Exterior S.A., Rua Libero Badaró 425, andar 29, Conjunto 292, São Paulo, S.P., Brasil. PARQUET BLOCKS. Indústrias Cazaca Ltda., Caixa Postal 6718, Rua Marechal Floriano 96, andar 11, 80.000 Curitiba, Paraná, Brasil. LUMBER from the Amazon region. Norte Madeiras Importação e Exportação Ltda., Rua Arcipreste Manoel Teodora 811, Belem, Pará, Brasil. CYLINDRICALLY TURNED PIECES, broom and mop handles, floor panels, floor blocks, wall panels, Paraná pine boards. Madeira del Pai S.A., Caixa Postal 2886, 80.000 Curitiba, Paraná, Brasil. PLYWOOD. Indústria e Comércio de Madeiras Dutra Ltda., Rua do Gasômetro 205, São Paulo, S.P., Brasil. LUMBER from the North and South of Brazil. MANASA, Madeira Nacional S.A., Avenida Rudge 752, 01134 São Paulo, S.P., Brasil. WOODEN DECORATIVE HANDICRAFTS. Fantasias do Nordeste Ltda., Caixa Postal 2515, Recife, Pernambuco, Brasil. FURNITURE, folding chairs and tables of jacaranda or guaribu. Servas Centro de Artesanato Mineiro, Palácio das Artes, Avenida Afonso Pena 1.537, Belo Horizonte, Minas Gerais, Brasil. MISCELLANEOUS INDIAN ART OBJECTS. Swift Trading Company, P.O. Box 014114, Miami, Florida 33101 or Swift Trading Company, Caixa Postal 8457, São Paulo, S.P., Brasil. SEEDS FOR FEED CROPS. Brazisul Agro Pecuaria Ltda., Avenida Fernando Ferrari 330, Bairro Anchieta, Porto Alegre, Rio Grande do Sul, Brasil. ZIPPERS. Companhia Brasileira de Metais, Rua Cons. Justino 437/505, Caixa Postal 7113/4838, São Paulo, S.P., Brasil. Cable: ZIPEREOR. Telephone: 93-1121. POPSICKLE STICKS. Henrique Bergel S.A. Ind. de Balas Soberana, Rua Bento Gonçalves 602, Caixa Postal 10, Ijuí, Rio Grande do Sul, Brasil. BRUSHES & BROOMS in general. WeinJoão Dias 1431, Santo Amaro, São Paulo, Brasil. Telephone: 247-0892. DOG & CAT FOOD. Brasil Export International, Caixa Postal 963, Rio de Janeiro, Rio de Janeiro, Brasil. BRAZILIAN BOOKS. Livraria Antiquaria, Bruno Basseches, Rua São Carlos do Pinhal 269, São Paulo, S.P., Brasil. MIMOSA for leather tanning. TaninoMimosa S.A., Montenegro, Rio Grande do Sul, Brasil. RUBBER SOLES. Amazonas Produtos para Calçados S.A., Avenida Rio Branco 745, Caixa Postal 30.095, ZC-1, França, São Paulo, Brasil.

Brazil ranks high in rose production & export

Year Production

Sales (thousand dozen) (US $ thousand) 72/73 200

150 73/74 500

400 74/75 1,000

1,500 75/76** 1,500

2,000

* Production 5/6 months ** forecast

Brazil is today one of the biggest producers and exporters of roses in the world. Even though it is considered a relatively-recent agricultural activity in the country, the production of roses, especially for export, has experienced tremendous growth in the last few years. From 1973 to 1975, the quantity of roses produced for export passed from 200 thousand to one million dozen (see chart). These figures take on greater significance if you take into consideration that the production period for export covers only six months of the year, corresponding to the European winter. Europe is presently the greatest consumer market for Brazilian roses.

Various regions of Brazil have the geological and climatic conditions favorable to rose cultivation (temperate climate and argilaceous sandy soil). These qualifications appear in the States of Rio Grande do Sul, São Paulo, Rio de Janeiro and Minas Gerais. But it is the city of Barbacena, situated in a mountainous region in the south of the State of Minas Gerais, that is endowed with one of the best climates in Brazil and has become distinguished as the major producer and only exporter of roses in Brazil.

most distinguished are: the “Baccara" (the most expensive, with hues of coral, brick and vermilion, the stem of which can reach 80 centimeters), the SuperStar (coral), the Nordia mini-roses (red), the Garnet (pink), the Prominent (coral), the Mabela (yellow), the Lamenuette (pink, spotted with red), Happiness (also called the meadow rose), Sara Marlyse, Belinda, Mercedes, Gold Time, Hebe Camargo, Interflora, Esparta, Super Gold, Rumba, Sambia, Chiang-Kai-Chek and the Brandenburg. UNIFLOR

In 1969, with an eye on the international market, the rose growers of Barbacena, under advise from technicians and economists of the Ministry of Agriculture, formed the Cooperative Union of Barbacena Floriculturists (UNIFLOR), for the sole purpose of export. The immediate goals of UNIFLOR were how to achieve tighter quality control, speed up transport to the port of embarkation and increase supply.

Difficulties arose at the beginning, mainly because of a lack of packaging "know-how", but these were soon overcome. UNIFLOR packages the roses to be exported in ventilated carboard boxes, lined with plastic. Transport to the international airport in Rio de Janeiro is made in refrigerated trucks. At present UNIFLOR sells to six European countries. Quality

UNIFLOR, which has 94 affiliate producers, has adopted a rigorous process for the selection of rose buds, which is in accord with the high standards of quality demanded by the German im

The Roses of Barbacena

In the so-called "City of Roses", where the land predominantly consists of argilaceous formations, intense studies are being done by agronomists and engineers, with the objective of cultivating a characteristic regional flower, the "Barbacena Rose". Among the almost 100 varieties existent in the region, the

porters. The German buyers not only distribute the Brazilian roses within Germany, but also in Switzerland, Italy, England, Austria and Holland. In order to have an idea of the seriousness with which this selective quality control is made, suffice it to say that of each 150 Baccara buds, 50 are rejected by the exporter right in the field. Hard Work

The technique for planting roses requires long and painstaking work. The cuttings are obtained from small pieces of the stem of an adult plant and placed in special baskets. When the plant reaches a certain height, the basket is planted directly in the ground. The preparation of the soil goes through a veritable ritual: it is plowed and fertilized with 10 to 15 kilos of manure and 400 grams of chemical fertilizer per square meter. The planting is generally done with a one-meter distance between the rows and 40 to 50 centimeters between the plants, in holes which are also individually fertilized with 5 to 10 kilos of manure and 150 grams of chemical fertilizer.

The fertilization process is repeated every two months. The plants should be pruned every year (a rose bush produces well for eight to 10 years) and the preventive treatment against fungi and parasites requires the applications of various pesticides, some even daily. New Markets

Nothwithstanding the active export to Europe – where Brazilian roses are extremely well received and regarded UNIFLOR plans to diversify their consumer markets. They have their sights on North America, which as a consumer has different taste than Europe. While the Europeans prefer the hothouse-grown rose, which is small and resistant, the North Americans want the larger rose, which is planted in the open air.

Fiat recently announced that it received a US$300 million loan for the construction of its automobile plant and foundry in Betim, in the State of Minas Gerais.

The loan, repayable in eight years, was granted by a consortium of European banks, with 80% guaranteed by a Swiss financial institution, a subsidiary of Fiat, and 20% by the government of Minas Gerais. The interest vacilates between 9 and 12%.

The total cost of the Fiat project in Betim will be US$930 million. The auto factory could begin production by next June. Annual output will be close to 200 thousand vehicles and 150 thousand engines.

The project also includes an iron and aluminum mill, which could begin to function at the end of the year.

The Rio Othon Palace Hotel, two years in the building on Copacabana Beach, opened for guests in February. The 29-story hotel is now fully operational.

A project which will contribute to the economic strengthening of the Northeast of Brazil, lessening regional inequalities through the creation of 1400 new jobs, has received a loan from the Banco Nacional do Desenvolvimento Econômico for about US$62 million. Thusly, Cobafi (Companhia Baiana de Fibras) will install in the Camaçari Petrochemical Pole in Bahia an industrial unit which will manufacture polymers, threads and nylon and polyester fibers. The enterprise, which also includes the participation of FIBASE,

Two North American firms, Western Electric Company and ITT Cable Hydro Space, won the international bidding sponsored by Embratel and American Telephone and Telegraph (ATT), for the construction and installment by 1977 of an underwater cable which will link Brazil to the United States. This cable will create an alternative route for the countries' bilateral communications, presently operated exclusively via satellite. The system will be useful for 25 years and the US$50 million spent on the project will be recuperated one year after its inauguration.

The new underwater cable permits telephone, telegraph, telex, television, data, facsimile and other special transmission with much more efficiency than the old cables. One of the advantages over satellite communication is the absence of delay in the transmission time. The voice transmitted by satellite travels twice the distance of 36 km (altitude above earth) and therefore suffers a delay of more than three-tenths of a second, which is a conversational hinderance.

The BASF Group, a West German chemical enterprise, has set aside approximately US$95 million, as part of its planning for the next five years, for investment in Brazil.

BASF officials point out that BASF is "one of Brazil's leading German investors". The group has invested some US$55 million in Brazil, with about onethird of this amount coming from “reinvestment of profits".

In 1975, the BASF group revealed a turnover of US$90 million from its BASF Brasileira, Glasurit do Brasil, Isopor, and Isonor plants, or over 85% of the West German enterprise's total Brazilian turnover of US$105 million.

Minister of Planning visits N.Y.

According to information released by the Brazilian Institute of Geography and Statistics (IBGE), the growth rate for Brazilian agriculture in 1975 was 3.4% overall.

Technicians pointed to the rains and frosts of last July as negative factors for agricultural production.

Of the 26 products mentioned (coffee was not included), only six showed a production growth: rice, cacao, manioc, soybean, jute and mallow; eight had smaller crops: cotton, sugar cane, beans, castor beans, wheat, tomatoes, tobacco and Bahian coconut. Nine items presented indices equivalent to those of

During his recent visit to New York, the Brazilian Minister of Planning, João Paulo dos Reis Velloso, presided over a meeting on March 4, which brought together the directors of the U.S. offices of Brazil's Department of Trade Promotion. The meeting focused on the best methods to increase trade relations between Brazil and the United States. On that day, Paulo Tarso Flecha de Lima, Director of the Department of Trade Promotion of the Ministry of Foreign Affairs, discussed the present stage of trade promotion in the United States and the possibilities for further development of these activities in chosen areas. With respect to this, he cited the present research project being conducted by the Trade Promotion Department on the North American market for selected Brazilian export products, as well as the participation of Brazil in 19 sectoral expositions in the United States this year.

Minister Reis Velloso emphasized the

importance of the goals established for the further penetration of Brazilian exports in the United States and the necessity of broadening the present knowledge of their behaviour in the large economic regions of the United States.

Also present at the meeting were Marcos Pereira Vianna, President of the Banco Nacional de Desenvolvimento (BNDE) and Aderbal Costa, Director of the Department of International Economic and Technical Cooperation of the Ministry of Planning.

On the following day, Minister Reis Velloso met in the offices of the Brazilian Government Trade Bureau in New York with 50 members of the BrazilianAmerican Chamber of Commerce in New York. At that time, a discussion was held on the various aspects of the Chamber's development with sights on its better usage as an element of support to the increase of trade between Brazil and the United States.

Two new firms will produce rail equipment

Two new firms in the capital goods sector-formed to produce railroad equipment-will begin operations next year in Rio de Janeiro. Sometra and Equipfer were set up at the end of last year and both have national capital in the majority. Their principal stockholders will be represented by Gilberto Paim, director of Transcom, a specialized consulting firm in rail transport.

Sometra will have as its foreign partner the French firm Delachaux and is going to produce subway tracks and roll bridges, used in the steel and heavy equipment industries. Equipfer is associated with Faiveley, also French, and is going to produce annually 1500 mechanisms for the automatic opening of doors of trains and commercial buildings.

"The amount of nationalization of Sometra will be pretty high,” explains Wair Beraldo, General Manager of the two firms. "We will only import at the begin

ning stainless steel, because the PVC coating that covers the tracks can be bought in Brazil."

With an initial investment of US$2.5 million, Sometra will occupy an area of 2 thousand square meters and will produce, initially, 20 thousand meters of tracks and 40 thousand weldings per year. The firm will definitely participate in the bidding for the supply of tracks for the metro in Rio de Janeiro. "But we are not going to depend on this bidding," explains Beraldo, "because the industrial market is quite ample and can absorb the production."

Since rail equipment is in the capital goods sector, and almost all the machine tools are acquired in Brazil, Sometra will begin negotiations shortly to obtain credit in the Banco Nacional de Desenvolvimento Econômico and special lines of financing from FINAME.

It is possible that, in the future, Dela

chaux, which in France, has a sophisticated and highly diversified equipment line, would be interested in the manufacture of other products.

Equipfer, with an initial investment of US$3 million, will occupy an area of 1500 thousand square meters. Its French partner, Faiveley, "holds a large part of the French market for automatic doors," says Beraldo, “and at the moment there is only one manufacturer in this sector, Fresimbra." The American firm, Stanley, while it has good participation in the Brazilian market for automatic doors, it is not installed in the country and it imports its material from the United States.

At the moment the two firms are looking for property in Jacarepaguá, in Rio, and studying the nationalization of the industrial process. "We are testing the national material which is similar to that used in France, by Delachaux and Faiveley,” said Beraldo.

Page 19

Brazilian fur company enters world market

Dominated by a small group of world producers who have protected their business with secrets passed on from father to son, the fur business was, until recently, an almost exclusive club, especially in terms of international trade.

A Brazilian firm, Curtume de Couros e Peles Flecha – manufacturer of the Polo Norte product line - managed to pene. trate this closed circle and in 1974 sold US$3 million worth of coats, coverlets and cushions made of rabbit fur to the European, American and Japanese markets.

The difficult opening

"It was not easy to open the market,” says Gideon Feldman, director of the firm, "but fortunately we had the advantage of an old but limited experience in the export of finished rabbit furs for the European market. France was the buyer at that time, buying an average of US$250,000 annually from the middle of the fifties to the beginning of the sixties, when we abandoned the foreign market ..."

With the incentives offered by the Brazilian government after 1967 Curtume Flecha tried to reopen abandoned markets and to obtain, as it had before, at least half of its billing in sales abroad. Times had changed, though, and the firm

did not really know up to what point its old experience could be useful in the recovery of markets. Naturally the marketing tactics adopted by the Curtume Flecha after 1970 – the year in which it decided to try the recovery – were basically different. Global Strategy

"We attacked on three fronts," says Feldman. "For four months I travelled through Europe and the United States to sound out potential clients, and everywhere I met a common barrier: a certain difficulty in making contact with these possible clients. I ended up discovering that the ideal solution was to participate in fairs and expositions." Feldman was proud of probably being the first Brazilian businessman to have a promotion plan abroad through specialized fairs and expositions on his own, besides participating systematically in all the fairs sponsored by Itamaraty (Ministry of External Relations). In the fur sector, the most famous specialized fairs are those of Paris and Frankfurt, the latter being the principal in furs and, like the fur sector itself, pretty much closed. Participant firms are chosen by their size and representation. But, despite being today one of the five major world firms in rabbit fur, Curtume Flecha only in 1974 was chosen to participate.

The advantage of quality

Participation in international fairs was not, however, the only means of opening up foreign markets. One scheme - direct mailing to potential clients and personal contacts, based on names supplied by the Chambers of Commerce of various countries - completed the marketing strategy. In this phase, the firm did not focus its attention on any special area of activity, but rather sought importers of 52 different specialties, from clothing to decor. "Some clients still remembered our name,” recalls Feldman, “however, what was important was to show that our work and our technique had been perfected in the years in between."

One of the secrets of the firm for the recovery of the foreign market was to offer quality at a competitive price. In addition, the basic demand of foreign trade – to adapt its products to the market – had to be met. Export is a compensory business, but it is essential that the products be adpted to the markets which they intend to reach," says Feldman. In the case of the Polo Norte products adaption varies from the color of the furs to the finishing of certain items. While white furs are not acceptable to the French market, they are highly considered by Americans and Japanese. The coverlets finished with silk - sought after by the Brazilian consumer – please neither the Americans, the Japanese nor the French.

Diversification

The result of the intense work developed by the firm was the reopening of markets, like France, which continues to be the principal buyer, followed by Germany, England, Holland, Belgium, Austria, Italy, United States, Canada and Japan.

The transition phase, according to Feldman, is the space of time which separates its present production capacity and that of the future. Once the transition phase is over, the firm could also opt for a wider marketing scheme, offering its products to large department stores and retailers, as well as to the large importers it has dealt with in the past. “The ideal,” says Feldman, "is to sell directly to the retailer. But this is not always possible."

In the case of fur clothing, the constant variation in style makes it practically impossible to sell directly to retail stores, because the product line is very diversi

to the domestic and foreign market and, since the seasons are different from one region to another, the production can be programmed ahead of time.

fied and each store buys units of each model. The solution is to supply the importers, who in turn distribute the production afterwards to different stores. In the case of coverlets, the other important item in the Polo Norte line, it is easier to sell directly to the retailers because there is no variety of products. Furs, the problem

In any case, the major problem at present of the firm is the raw material tanned skins – to attend to the growing demand. At the end of 1974, the new industrial unit of the manufacturer opened in Moji das Cruzes, about 40 kilometers from São Paulo. It is the most modern tannery in the world, according to Feldman. It utilizes electronic computers and the old tanning processes were substituted by processes discovered in recent years.

Producing products for the cold, the sales of the Curtume Flecha are naturally seasonal. In the summer, the clothing sales drop to zero, but the coverlets, normally exempt from variation in style and frequently used as decoration, drop only 30%. The firm, however, does not suffer greater problems because it sells

Massive Import

Another plan of Flecha is to increase the participation of national raw materials – unprocessed rabbit fur – in its manufacturers. Up to 1960 Flecha used the know-how of the largest firm of this kind in the world, the French Chapel et Frères. Flecha imports large quantities of the unprocessed furs from France. Chapal et Frères is the major buyer of articles manufactured by Curtume Flecha.

The firm, meanwhile, imports the unprocessed furs because the breeds of rabbits in France are those that most lend themselves to clothing and coverlets.

Raised today in various countries, and resulting from a selection that took centuries, the French breeds - among them, New Zealand, Butterfly and Chincilla have ideal fur, full, fine and resistant skin. The attempts to breed them in Brazil met with opposition from the potential breeders. They thought that the Brazilian winter - mild in comparison to the

European - would not permit furs to reach the same quality. "It was only a taboo," says Feldman, "and to prove the possibility of raising in Brazil the French breeds, we installed a small breeding farm in Moji das Cruzes, São Paulo, next to Suzano, and we are increasing the activity of the breeders, giving them technical assistance ..."

Feldman believes that at a long term the breeding of the French rabbit will be interesting also in terms of nutrition, because its meat is good for human consumption. It is, as a matter of fact, one of the future plans of Curtume Flecha to process the rabbit meat.

Another plan is to increase the manufacture of clothing made from sheepskin, an activity that the firm began eight years ago, utilizing sheepskins from the South of Brazil or imported from the United States and Argentina. With this material the firm manufactures seat covers for cars for the foreign market (Germany and France are the major buyers), coverlets and rugs for the national market, and it is already one of the three major manufacturers in this sector in the country.

Large banks interested in Brasilinvest

Some of the largest banks of the world - Bank of America, Banque Nationale de Paris, the Union of Swiss Banks and the Nazionale de Lavoro - are likely to participate in Brasilinvest, a firm created last December to function as a catalyst agency to attract investments for its own projects or those of third parties. Brasilinvest brings together, for the execution of their projects, private Brazilian initiative, foreign and government participation. Its structure is different from the other agencies, like Adela and Eurobrás, because operational control is national.

In its first month of existence, Brasilinvest captured the interest of the important financing circles of Brazil and Europe. This interest was the reason for the favorable results of the European trip of Mário Garneiro, president of the company, who maintained contacts with Swiss, French and German bankers and entrepreneurs. All of them were attracted to the firm's original form of associative capitalism. Brasilinvest also seeks the best partner for the creation of jointventures between Brazilian and foreign firms, insuring them an exceptional fi

nancing plan, since the major banks of the world are stockholders in the firm. Brasilinvest wants to further stimulate the contracts that best attend to the national interest, giving emphasis to those that the Ministry of Industry and Commerce considers priority, principally those that contribute to the improvement of Brazil's balance of payments, i.e., favoring exports.

In this way, the Brazilian firms in the growth phase now have an instrument of penetration in foreign markets, above all the European ones, and an aid in the purchase of technology suited to their needs.

Brasilinvest is essentially an investment firm, but its directors do not exclude the possibility of utilizing it for placing Brazilian stocks and bonds on the international market.

In the organization of Brasilinvest, each member brings in know-how and all participate in the projects. Five projects are already under study in Brazil, totalling close to US$250 million. These projects open up many possibilities for national industry. The reaction of the European entrepreneurial circles has been en

couraging. The directors of important banks and firms have shown great confidence in the investments and financing of national projects. The president of the Swiss Banks, after a detailed study of the Brazilian situation, recommended to his clients that they continue their investments in Brazil. In Paris, the most distinguished entrepreneurs of the CNPF (Patronat Français) and officials, like Raymond Barre, the French Minister of Foreign Trade, believe that investing in Brazil is good business.

In France, both in the public and the private sectors, the opinion is that Brazil is a place to invest in.

Minister Raymond Barre sums it up thusly: "We do not see Brazil as a market to explore, but rather as a country where we can associate ourselves with industries to create a common process of development. I believe that Brasilinvest is the type of instrument that serves this policy."

This month, the director of Brasilinvest is going to meet for the first time in Geneva, the European headquarters of the firm.

Rio Grande do Sul plans investment seminar

The Government of the State of Rio Grande do Sul will sponsor an International Investment Seminar, to be held in the state capital of Porto Alegre, from April 25 to 28, 1976.

The seminar will focus on the advantages of Rio Grande do Sul as a prospective site for new investments, especially in the areas of agroindustry, metalmechanics, electro-electronics, carbochemicals, petrochemicals and the chemical industry in general. Throughout the program, panel discussions will allow an interchange of ideas between the audience and the guest speakers. The seminar will also give participants an opportunity to meet Brazilian ministers from various economic sectors, who will be present for the occasion.

Mr. Claudio Strassburger, Commissioner of Trade and Industry from the State of Rio Grande do Sul, met with interested parties at the Brazilian Government Trade Bureau in New York on March 25 to brief them on the format of the meeting and to provide them with information on their participation in the seminar.

Plains, the Central Lowlands and the Highlands. It has become the collecting and distributing center for goods and services.

Besides its political-administrative function, Porto Alegre is a cultural and industrial center. Many industrial establishments transferred to Porto Alegre from outlying areas because of the advantages of its location and its being a well-equipped service center. The growth of the tertiary sector has followed along with the industrial development. Goals

The long-term goals for the economic performance of the State of Rio Grande do Sul are concentrated in strategic areas. The Government, based on a study carried out by its technical staff, selected the following priority areas: 1) Agriculture and Cattle Raising: aim

ing at quick growth of agriculture and cattle raising and strengthening the systems of marketing and supply.

2) Industry: plans for a defined indus

trial policy, for strengthening the competitive power of the sector, for attracting new investments and for the technological evolution of the

sector. 3) Education: plans for the quantitative

expansion and the qualitative improvement of teaching, its employ

ment policy and teaching merit. Agriculture and Cattle Raising

A policy has been formulated to make the agricultural sector more dynamic, with plans for raising the levels of production and productivity and for the qualitative improvement of products through better soil usage. The government is concentrating its efforts on federal financial aid, as well as loans from national and international financing institutions for agricultural programming in the State.

Special studies have been made on crop evaluations, export consolidation

The State

Rio Grande do Sul is the southernmost state of Brazil, bounded in the west by Argentina and in the south by Uruguay.

The State encompasses a surface of 282 thousand square kilometers, approximately the size of the State of Nevada.

The average latitude of the State is 30°5', its distance from the equator being the same as that of Houston. The State lies within the temperate zone. Rainfall is uniformly distributed over the whole year, with a slight predominance during the winter months.

The population of Rio Grande do Sul is 7,000,000, with an average growth rate of 2.2% per year. The urban population of the State is 54%.

The Capital

The capital of Rio Grande do Sul is Porto Alegre. It lies on the banks of four rivers, the Jacui, Sinos, Cai and Gravatai, which form a large estuary called the Rio Guaiba. This feature gives the city the largest river harbor in Brazil, interconnected with the Atlantic Ocean by means of the Lagoa dos Patos.

Porto Alegre's location has been an important factor in its growth. It is the convergence point for the agricultural and cattle raising production of three economically important areas: the

herd, with 11.9 million head in 1975, represented no less than 54% of the national total. The raising of hogs, nearly 8 million animals, is carried out in the North-Northwest portion of the state.

The industrialization of Rio Grande do Sul is based on the progressive substitution of goods which were formerly purchased on foreign markets. During the past few years the development of new industrial fields (chemicals and metallurgy) has allowed a greater diversification of the State's industrial sector.

Industrial development in the State is based on the variety and abundance of agricultural raw materials, the food industry being the most important one, with improved techniques for the production of frozen meats, cold cuts and canned goods.

The metropolitan area of Porto Alegre is the most industrialized one of the State, mainly in metallurgical and food production. Other towns, however, have important industries, as is the case of Novo Hamburgo, which presently is the great exporter of footwear, and Caxias do Sul, which, in addition to the production of wines, has a strong metallurgical industry.

Industry

The State of Rio Grande do Sul offers many conditions suitable to large industrial development. Among them are: high income of the population, considered the fourth highest state market in Brazil; diversified offer of raw materials from agriculture and cattle raising; industrial tradition; sense of enterprise; qualified labor force; infrastructure (power, transportation, communications, all greatly increased over the last few years).

The main goal of the State is the attainment of a balanced economic development, with the increase of the domestic industral product to 9% a year at a fixed price. With this in mind, the following priorities have been established: 1) Strengthening, expansion and mod

ernization of the industrial enterprise; 2) Selective attraction of new investors

to those sectors which require a high

concentration of capital; 3) Increased efficiency in the tertiary

sector; 4) Increased participation of dynamic

industries (high aggregate value, elasticity of supply) in the composition of

the domestic industrial product; 5) Stimulation for the implantation of

new industries.

A defined industrial policy has been formulated, which is compatible with the guidelines of the Federal Government. The intention is to create favorable conditions for the quick acceleration of private industrial development and to provide potential investors with information on the best possibilities in the State.

The growth of the industrial product at a minimum annual rate of 9% will follow up the national evolution of the sector and will allow the increase of income levels and employment opportunities.

The plan calls for the stimulation of dynamic and polarizing industries; traditional industries, especially those making use of agricultural raw products; and handicrafts, systematically and rationally made, in connection with the tourism plan.

Promotion and incentives for the formation of industrial conglomerates and the implantation of industrial districts are outlined by the State.

The Government and private enterprise have joined forces to find solu

tions to the problems of industrial technology; human resources; identification of new opportunities for investments; preparation and promotion of industrial profiles and projects; technical, administrative and financial aid to industrial companies.

In order to provide a solid infrastructure, it will be necessary to attack a number of basic sectors, in order to really fulfill the demands of balanced development. The policy of action established by the State Government, aiming at allowing the private sector profitable and secure investments of its capital, will be concentrated on the following aspects of infrastructure: • electric power at lower prices • efficient transportation network (6

thousand km of asphalted road) • modern communications system, with

direct distance dialing (DDD) and telex

connection • 115% increase in static warehousing

capacity of silo network new harbor at town of Rio Grande support to the national policy of agricultural and industrial production support to the national export promomotion and commercial exchange with the Latin American Common Market creation of new schools for formation of technicians for the industrial sector granting of fiscal exemptions and

credit stimulations • creation of industrial districts in key

locations. The Economy

With a population that represents 7.4% of the Brazilian population, the State of Rio Grande do Sul contributes 8.6% of Brazil's internal revenue.

The economy of the State is closely connected with agriculture and cattleraising, which in addition to generating 33% of the internal revenue, is responsible for 59% of the production of the industrial sector.

The composition of agricultural revenue, in order of importance, is formed by the cultivation of wheat, corn, rice, cassava, soybean, tobacco, beans, potatoes and onions. Among these products, wheat and soybean stand out because of their rapid development, having shown annual increases in the order of 40% in the past few years.

The activity of raising beef, milk and wool cattle is carried out mainly in the area that borders Uruguay and Argentina, where the bovine herd, which in 1975 was composed of over 12.5 million head, is mainly for slaughter. The sheep

Petrochemical Pole

Recently the Brazilian government announced that the State of Rio Grande do Sul had been chosen for the site of the country's third petrochemical "pole" or complex. (The two existing complexes are in São Paulo and Bahia).

The go-ahead for a new petrochemical center in the extreme South – with its US$600 million US$1 billion price tag – has opened the door to the participation of international investors. The government petrochemical company, Petroquisa, is expected to build and run the core plant to manufacture basic raw materials. International companies could undertake or qualify for joint ventures in the six downstream plants.

The Rio Grande do Sul project calls for a core plant using naphtha, produced by steam cracking, as well as gasoil as the feedstocks for the production of ethane, butane, butediene and propane, plus gasoline and fuel oil.

The establishment of the petrochemical pole in Rio Grande do Sul is yet another step in the outstanding development of the State in terms of its place in the nation. The International Investment Seminar in April will be the projection of the State's efforts toward dynamic development and economic advancement.

Page 20

BATHROOM TOWELS. Desina Exportadores Ltda., Rua Cinderela 25, Caixa Postal 30641, São Paulo, S.P., Brasil. Cable: BUSINESS, São Paulo.

ORNAMENTAL PLANTS, dried natural The following Brazilian firms, listed by product lines, wish to export said items. All inter- flowers. Melo Comércio Importação Exportested parties should contact the individual firms directly at the addresses given with each

ação Ltda., Rua Filadélfia 81, Brooklin, São listing.

Paulo, Brasil. ANNOUNCEMENTS

BATHROOM FIXTURES, glazed wall tiles, EXPORTER OF BRAZILIAN PRODUCTS IN permanent plumbing fixtures for sanitary GENERAL. Setemp Trading Company, Rua use. Marano S.A., Avenida Conde de Boa EDIBLES Goitacazes 71, conj. 201, Caixa Postal 306, Vista 121, Recife, Pernambuco, Brasil. Tele-

FRUIT JUICES & fruit pulp, margarine, bisBelo Horizonte, Minas Gerais, Brasil. phone: 22-2422 or 22-2449.

cuits, macaroni, soybean oil; also, soaps, COMPANY OFFERS COMPLETE ASSIST

chemicals, paper, cardboard boxes, ceramic ANCE to executives on business trips to

FLOOR TILES. Cerâmica Chiarelli S.A., Rua tiles. CONSUBRASA, Comercial Norte Sul Brazil (offices, bi-lingual secretaries, inter

Domingos Brunelli 180, Caixa Postal 8667, do Brasil, Exportação e Importação Ltda., preters), and services as buying agents. EMMogi-Guaçu, São Paulo, Brasil. Attention: Rua 7 de abril, 125, 3° andar, São Paulo, S.P.,

Brasil. ESSE S.A., Avenida Paulista 1159, sala 1210,

Mr. Oscar Chiarelli. Cable: CHIARELLI. Tel01311 São Paulo, S.P., Brasil. New York teleephone: 6-0404.

SOYBEAN. FASKO S.A., Rua México 3, 17° phone: (212) 582-9119.

andar, Caixa Postal 4754, Rio de Janeiro, RJ, BATHROOM CABINETS and framed mirBRAZILIAN FIRM offers services as repre

Brasil. Telex: 021-22171 and 22253. Telerors. Antonio de Paula, Rua Guaranéia, 314, sentative for national and foreign firms. In

phone: 224-9136, 252-0973 or 221-5119. apt. 31, 30.000 Belo Horizonte, Minas Gerais, centiva Comércio, Importação e Exportaçã Brasil.

CANNED SARDINES, canned hearts of Ltda., Rua Frei Caneca 1407, 8° andar, conj.

palm. Alfonso, Alvaro S/C Ltda., Caixa Pos818, São Paulo, S.P., Brasil.

BEDS. Indústria e Comércio de Móveis Dir- tal 18, Mogi-Mirim, São Paulo, Brasil. ASSISTANCE TO EXECUTIVES IN BRA- cilda Ltda., Rua Regente Feijo 345, Santo ZIL. Office offers all facilities for people on André, São Paulo, Brasil. Telephone: 449

HEARTS OF PALM. Prince Indústria e Cobusiness trips. (Service by day, week, or

mércio Ltda., Avenida Rio Branco 37, grupo 6499 or 449-6604. month; bi-lingual staff, messenger service,

602, 20.000 Rio de Janeiro, Rio de Janeiro,

Brasil. interpreters; general guidance to living and

IMITATION ANTIQUE CLOCKS. CONEXworking in São Paulo). Great Start Ltda.,

PRO Agência de Comércio Exterior Ltda., CANNED FRUIT & VEGETABLES. Aguape Caixa Postal 6038, Praça da Republica 177, Caixa Postal 7441, 80.000 Curitiba, Paraná, S.A. Indústria da Alimentação, Avenida conjunto 111, São Paulo, S.P., Brasil. TeleBrasil.

Saldado Filho 641, Caixa Postal 543, Pelotas, phone: 34-3245. Cable: Greatstart, S.P., Bra

Rio Grande do Sul, Brasil. Cable: AGAPE. sil.

ORNAMENTAL FLOWERS. Caetano NasciTRADING COMPANY OFFERS variety of mento Mascarenhas, Caixa Postal 725, Ave

SOYBEAN. Socomin Soc. de Com. e Ind. products. Contact: V. M. Vendas Marketing nida Amazonas 8400, Belo Horizonte, Minas

Ltda., Avenida Graça Aranha 19, GH. 1102, and Trading S.A., Alameda Nothmann 611, Gerais, Brasil. Telephone: 33-0026.

Caixa Postal 387, ZC-00, Rio de Janeiro, RJ,

Brasil. 01216 São Paulo, S.P., Brasil. BRAZILIAN FIRM offers services as buying

LIGHTING FIXTURES. Osram do Brasil, CASHEW NUTS. OBRACI Ltda., Rua Conagent in Brazil. Quasar Administração, Pla

Companhia de Lampadas Elétricas, Caixa stança Barbosa 215, Sala 301, Rio de Janeiro, nejamento e Representações Ltda., Rua 5 de Postal 2997, São Paulo, S.P., Brasil.

RJ, Brasil. julho, 98, 04281 São Paulo, S.P., Brasil. LAWYER, American, trained in Brazil, offers counsel to US firms. Morris Schlesinger, Avenida Presidente Vargas 633, gr. 2108/9, Rio de Janeiro, RJ, Brasil.

Published by COMPANY HEADED by experienced US

BRAZILIAN GOVERNMENT TRADE BUREAU senior, marketing executive, with full-time

A Department of the Brazilian Consulate General in New York bi-lingual associate in São Paulo offers ser

551 Fifth Avenue, New York, N. Y. 10017 (212) 682-1055 vices as buying and/or selling agent in Bra- zil; will also arrange joint ventures. JAD

Information on Brazil can also be obtained from: Trading Corporation, Astor's Lane, Sands Point, New York 11050. Telephone: 516-883-

Brazilian Embassy, 3006 Massachusetts Ave., N.W., Washington, D. C. 20008 1077. Attention: Mr. Jerome Entis.

(202) 797-0100
Brazilian Consulate General, 630 Fifth Avenue, New York, N. Y. 10020

(212) 757-3080 DECOR

Brazilian Consulate, 3400 Montrose Boulevard, Houston, Texas 77006 HAMMOCKS. A. B. Oliveira & Cia. Indús

(713) 526-3941 tria, Comércio e Exportação de Redes, Rua

Brazilian Consulate General, 2 Canal Street, New Orleans, La. 70130 Epitácio Pessoa 1657, Fortaleza, Ceara, Bra

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Brazilian Consulate General, 20 N. Wacker Drive, Chicago, III. 60606 SOLID WOOD FLOORING & WALL PAN

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Brazilian Consulate, 100 N. Biscayne Blvd., Miami, Fla. 33132

(305) 377-1734 elem, 66000, Pará, Brasil. Telex: 0911160 AIEL BR.

Page 21

In Santarém, located in the North of the State of Pará, representatives of agencies involved in the Program of Agricultural/Cattle Raising and Agromineral Poles of Amazônia (Polamazônia) met to examine the prospects for the program in 1976. An investment of US$95 million is foreseen for 1977, with resources stemming from Proterra, the Fund for the Development of Strategic Areas and the Fund for the Development of Integrated Programs.

The meeting took on a technical tone, as groups discussed agriculture, economic and social infrastructure. The action of the different agencies in the execution of the Polamazônia projects was examined and special emphasis was given to the difficulties found in the past and to getting suggestions for greater activity. In 1975, Polamazônia received close to US$70 million for the development of 250 of its projects.

This year Ford do Brasil S.A. should sell more than US$150 million abroad, 34% more than the results obtained last year. This information was released by the Director/President of the company, Mr. Joseph O'Neill.

O'Neill further disclosed that Ford is exporting daily to Germany, Canada and Argentina almost a thousand OHC 4cylinder engines, which are used in the Maverick, Jeep, Rural and F-75. The Philco division of the company is exporting a daily average of 7,800 car radios and components.

O'Neill said that the firm is sure to reach and even surpass the goal of the program for the concession of fiscal benefits to export - Befiex - of exporting in 10 years (from 1972 to 1982) a total of US$1 billion.

As of this year, programs such as Polonordeste and the Irrigation Project should gain increased rhythm, along with those projects already started by the Superintendency for the Development of the Northeast (SUDENE) and the State governments. The favorable data reflects confidence in the development of the region and in the progressive reduction of regional income inequalities.

A preliminary estimate of the investments covered in the Second National Development Plan for the Northeast indicate that, in 1975, US$5 billion was invested in the region, corresponding to 16% of that destined for the area in the five years (1975-79) of the Plan.

The World Bank has approved a US$12 million loan for a rural development project in the Northeastern State of Rio Grande do Norte. The project, one of the first initiatives under the Government's POLONORDESTE program for the region, has planned outlays of some US$2.5 billion over five years, and includes the following objectives: to increase the net income of participating cotton farmers by some 50% within five years and to double their income over a nine-year period; to increase cotton production twofold and generate a marketable surplus of food crops; to extend, within a five-year period, institutional credit to 8,000 farm families and technical assistance to about 15,000 families; to provide community health services to about 80% of the project area's rural population. The region grows a premium grade of long, staple cotton that has been resistant to competition from synthetic fibers.

Brazil could reach self-sufficiency in nickel production after 1979, with the beginning of operations of the Níquel Tocantins Company. The Tocantins project, already in the installment phase, recently received significant financing from the National Bank for Economic Development. The group will use 65% national equipment.

The Tocantins nickel project foresees the installation of a nickel carbonate plant in the municipality of Niquelândia (State of Goias), together with the mineral beds. There are also plans for an electrolysis unit in São Miguel Paulista (State of São Paulo), for the transformation of the carbonate into nickel.

A production of 5 thousand tons per year is foreseen. This initial production will supply all the domestic demand. The industrial group, to begin operations in the second half of 1978, will immediately have an exportable surplus in the order of 700 tons. The beginning of Brazilian production of stainless steel, with the implantation of the Villares and Acesita projects, will also open up new demand for nickel. These projects will require about 1200 tons/year, which could be assumed by Níquel Tocantins.

Last month a high level commercial mission from Iran spent 10 days in Brazil for the purpose of examining with authorities and Brazilian entrepreneurs the possibility of joint-venture in the sectors of agroindustry and mining.

The program for the visitors, organized by the Banco do Brasil, included audiences with the ministers in the economic areas and with the Minister of Foreign Relations, as well as contacts with industrial and agricultural firms from São Paulo, Minas Gerais and Bahia. The visit of the Iranians was a result of the visit of the president of the Banco do Brasil to Tehran last year.

The secretary-generals of the Iranian Ministries of Economy and Finance, Mines and Industry, Agriculture and Natural Resources and two technicians from the Bank of Agricultural Expansion, visited in São Paulo, Embrear and a soybean firm of the Matarazzo Group; in the State of Minas Gerais, Vale do Rio Doce, Mineração Aguas Claras and the Jaíba Project; and in the State of Bahia, the agroindustrial sugar cane project of Agrovale, in the region of Juazeiro.

Canada's MacMillan Bloedel's major tree planting project in the State of Santa Catarina is progressing. Work on a plantation that will eventually cover about 300,000 acres is being carried out by a Brazilian company, Companhia Catarinse de Empreendimentos Embrasca, or Embrasca. Embrasca, 51% owned by MacMillan Bloedel and 49% by Brascan Ltd., planted more than 20,000 acres of trees in 1975.

In 1975, the first year of the Second National Development Plan of Brazil, an unprecedented volume of resources was received by the Northeast, according to the balance sheet of the Ministry of Planning.

The annual Man of the Year Awards, sponsored by the Brazilian-American Chamber of Commerce, will be presented at a reception, to be held on May 7 at the Plaza Hotel in New York City. The American recipient of this dual award will be Mr. William L. Naumann, Chairman of the Board, Caterpillar Tractor Co., Inc. The Brazilian chosen is Mr. José Papa, Jr., President of the Federation of Commerce of the State of São Paulo. In 1974 there was a significant increase in the Brazilian production of wall tiles, of ceramic floor tiles and of refractory bricks.

Ceramics industry faces a bright future

The ceramics industry in Brazil is indeed a sector with fascinating prospects for development.

Even with an installed production capacity of about 45 million square meters/year in 1974, the tile firms still managed to sell everything that they produced, a situation that persisted last year, even with the slight drop in the rhythm of activities of the large consumer of this production-civil residential construction.

Luciano Barzaghi, president of the Brazilian Ceramics Association (ABC), states that the segments of the ceramics industry benefitting most at the moment are those of refractory bricks and flooring. The first, sold mostly to the steel industry, is benefitting from the policy for the accelerated expansion of national steel production. The second is gaining unexpected sections of the market, as traditional floor materials increase in price and become less available to the general public.

and the Indústria de Azulejos S/A (IASA), headquartered in Recife, with plants in that city, as well as in Salvador and Fortaleza.

Together the two groups are responsible for more than half of Brazil's wall tile production which was 27.1 million square meters in 1974, according to a survey conducted by the Syndicate of the Industry of Ceramics for Construction of the State of São Paulo.

Other important producers are Ornato S/A Industrial de Pisos e Azulejos, of the State of Espirito Santo and Azpa Azulejos do Pará S/A, of the State of Pará. In São Paulo the principal producers are Matarazzo, Brilhocerâmica and Fiação e Tecelagem Sant'Ana S/A Indústrias Gerais.

The processing of white tiles has become a big business in São Paulo. Among the most famous firms in this activity is Ceramitália Indústria e Comércio Ltda., one of the pioneers in the decoration of white tiles. The success of these products caused the major tile manufacturers -including the units of Klabin and IASA, and that of Matarazzo in São Paulo-to mass produce this type of tile.

Floor Tiles

The production of floor tiles has become sophisticated in recent years with the conquest of new markets. The technological revolution in the sector took place before the boom in wood prices. This boom, however, has opened up new prospects for the ceramic floor tiles, as substitutes for the wood products.

The significance of the advance of the ceramic product can be measured by the production figures of 1974: of close to 15.1 million produced, a little more than half consisted of decorated and glazed tiles, products which were practically non-existent on the market (because of decreased demand) five years ago.

An aggressive marketing campaign has been developed in Brazil as to the advantages of floor tiles over wood. One of the major producers of São Paulo, Brilhocerâmica S.A. Industrial e Comercial, has published a pamphlet on technical information on the use of tiles and wood. Some of the advantages given for the use of ceramic tiles over wood are: incombustibility, resistence to humidity and cleaning facility.

Wall Tiles

The Brazilian ceramics industry finds its greatest expression and advancement in the sector of wall tiles. This sector has experienced a notable modernization process in its products and manufacturing techniques. The changes were brought about by the attempt to satisfy buyer preference and to confront the competition. There was also an urgency in increasing productivity and the volume of production, while reducing costs.

The principal manufacturers of wall tiles, in terms of volume of production, are Klabin Irmãos e Companhia (plants in Minas Gerais and Rio de Janeiro, the latter being considered the largest production unit of wall tiles in the world)

Another sector of the ceramics industry is that of the manufacture of glazed earthenware. The activity of this sector can be measured by the foreign performance of one of the major firms of the sector, Cerâmica Porto Ferreira S/A, of São Paulo, which holds 35% of the Brazilian domestic market for this product line. The firm did not develop any aggressive export policy, but it did exhibit its products and catalogues in some shows organized by Brazil's Ministry of External Relations. It has almost reached its goal of exporting 30% of its production.

Producing plain and decorated tableware, Porto Ferreira has been in the market for 44 years. For a market which circulates about 4 million pieces/year of glazed earthenware, the firm produces close to 1.4 million pieces.

For Joaquim das Neves Pinhão, director of the firm, Brazil could be considered a bit behind in equipment when compared to European and North American producers, but as far as technology is concerned, he believes that Brazil is completely up-to-date and that the Brazilian product, in this sense, is comparable to that of any other country.

Trade and industrial fairs take off in Brazil

Although it has only been fifteen years since their installation, trade and industrial fairs and expositions in Brazil today represent a very important part of the Brazilian process of industrialization and development.

These fairs and expositions have been undisputed successes and they have truly opened up a new economic front. They have developed, from their early days, an educational and institutional look and are now outstanding vehicles of promotion.

The effective regulation of the fairs and expositions in Brazil dates from 1968. At that time the Brazilian government officially recognized the importance of such events to the national economy and established certain objectives: to promote regional, national and

international commerce; to place the producer in contact with the consumer, to tighten the bonds of economic cooperation and to publicize the national production, services and events.

Consolidating government support with entrepreneurial vision, the number of events has grown substantially in the past few years, putting pressure on the National Department of Commerce to compile a conciliation of dates and examination of petitions for authorization to exhibit.

The fact that the situation in Brazil passed so quickly from one of sporadic events to an intensive panorama of shows has been responsible for changed attitudes abroad. New credibility has become attached to Brazilian products and to business opportunities in the nation.

For 1976 the official calendar for fairs and expositions included 34 events, among which are the internationally acclaimed Automobile Show and FENIT (Textile Fair). Such shows epitomize the Brazilian potential in marketing its products both nationally and internationally, These shows represent the meeting of supply and demand. In Brazil foreign businessmen can find the sophistication of an Automobile Show, the high business level of a FENIT and the technological advancement of a Mechanics Fair. The current events, with their modern look, are the result of new trade relations and new techniques and services developed by Brazil.

In terms of international trade, the Brazilian exporter can count on government support, which is an

Manufacture of bicycles experiences boom

The manufacture of bicycles is a recent activity in Brazil, having begun only three decades ago. But after 1967, with the introduction of technical innovations in the product line and new concepts in marketing, was a true "boom" initiated. This "boom" has characterized the sector ever since. Innovations

The elements of greatest importance in this development have really been the innovations in the products themselves. Such modifications consisted mainly in smaller wheels, adjustable handle bars and seats, unisex models, collapsible bikes and brighter colors, substituting the traditional black.

With the transformations which were made after 1967, attitudes began to change. In addition to a short-distance transport vehicle, the bicycle came to be considered a leisure item, making it desirable for consumers of a higher income level.

"Long live the Bicycle", "The bicycle demands passage", "Nothing better than a good bicycle". With these enthusiastic publicity slogans, one of Brazil's largest bicycle producers, Monark, launched its campaign geared to dealers and the public.

In some regions of Brazil, like Gover

nador Valadares, in the State of Minas Gerais, Joinvile, in the State of Santa Catarina, Taubaté in the State of São Paulo, and in various locations in the Northeast, the bicycle is truly a means of popular transportation. But in general, on the Brazilian scene, it is a vehicle typically used by children, young people and the poorer classes. The idea of the campaign was to modify this limited attitude.

The results are already concrete. With each year that passes, more consumers from upper income levels are using bicycles. It is again being looked at as an ideal vehicle for the practice of physical exercise, and this has profoundly altered Brazilian production, as the chart shows.

The chart shows that Brazilian production increased tenfold in the first nine years analyzed. It has continued to grow and in 1975 production reached 1 million 300 thousand units, of which close to 130 thousand were exported to the markets of the United States, Africa and Europe.

The projection for bicycle production in Brazil is for 1 million 500 thousand units this year, and two million by 1978, with two firms, Monark and Caloi, continuing to dominate the market.

Caloi Bicycles

Indústria e Comércio de Bicicletas Caloi S.A., founded in 1898 with the registered name of Casa Luiz Caloi, began as a bicycle and motorcycle dealer and machine shop. Right from the beginning it was successful, as exclusive distributor in Brazil of the famous Italian Bianchi bicycles.

As the years passed and the firm continued to advance, the pioneer tradition of Luiz Caloi, the founder, gave incentive to his successors to make his dream of manufacturing bicycles in Brazil a reality.

In 1942 the firm began to manufacture parts in Brazil and in 1948 Caloi began the assembly of Brazilian bicycles, using a considerable amount of national components.

Presently completing 77 years of existence, Caloi continues in its expansion. In 1972, it increased its production to 250,000 units; in 1973 it passed to 340,000 and in 1974 it reached 580,000.

In 1972 Caloi began its export-drive. "We are entering the world scene," said the firm's director Bruno Caloi on this occasion. And with this move, Caloi entered an extremely competitive market, where large traditional producers, like France, Italy and the United States, had a foothold for many years.

Caloi's exports were begun with sales to Paraguay, Bolivia, South Africa and Denmark. Afterwards the firm turned to the United States, which at that time was producing seven times more than Brazil.

The export effort on the part of Caloi was really noteworthy, especially because it was in a sector where many countries had already worked and exported for almost 100 years. In addition, Brazil had little tradition in the mechanics industry.

For the firm the answer was an elaborate and competitive product - the Caloi 10. According to Bruno Caloi, this bicycle, with each pedal, advanced much faster than a common bike.

With their innovations, the firm moved into another part of the market: that of the connoisseur who wants to move to more sophistication ic product.

In the same way as automobiles, bicy cles have yearly changes in their industrial form. The firm moved on to the collapsible bicycle, which came to account for 30% of Caloi's production, due to its wide acceptance.

Page 22

fied demand. Subsequently, the demand for bicycles would be further accelerated by the petroleum crisis. Returning to Brazil, the Alterosa group studied the market, confirming that the average growth of the sector in the last nine years had been in the order of 37.3%, Considering the results of their studies, they came up with the possibility of installing a new bicycle factory in Brazil, taking advantage of the various favorable factors presented by the north of the State of Minas Gerais, in the Municipality of Montes Claros, such as: availability of labor, an ample banking network, efficient means of transportation, availability of suppliers of raw materials, secondary materials and imputs, proximity of consumer centers, as well as the advantage of being within the SUDENE area.

The undertaking was thus planned, with investments that reach a total of

US$9 million. The project will be realized with resources from Alterosa itself, as well as from Comlider, Peugeot and Denasa. Further resources will come from fiscal incentives and financing from the National Bank for Economic Development.

Alterosa and Peugeot have 40% participation, and the remainder is divided among the Denasa Group and the Government of the State of Minas Gerais. The know-how will be supplied by Cycles Peugeot, of France, one of the most renowned manufacturers of bicycles and motor bikes in the world. The billing is forecasted at US$20 million per year and 40% of the production should be exported.

The undertaking will also offer the advantages of creating 1,505 direct jobs, substitution of the regional imports from the Central-South, and export to the foreign market.

Peugeot & Banzai

Considering the great potential of Brazil's North/Northeast market, two large firms are setting up bicycle production in the SUDENE (Superintendency for the Development of the Northeast) area: Alterosa Mechanical Industries and a factory of the B. Moreira-Banzai Group.

The latter firm was formed from the merger of the Brazilian group with the well-known Japanese bicycle producer Banzai. The group plans to install its facilities in Bahia, in Feira de Santana. Investments should be in the order of US$6 million and the plant should produce 350,000 units annually, directly employing 874 persons.

The type to be manufactured there will be a sports model, sophisticated, more than one-speed, with an eye on export.

The Alterosa project is already in an advanced stage and production should begin this year.

During a trip to the United States the directors of the Alterosa Group sensed the interest of the American businessmen in the import of bicycles. They were made aware of the fact that the world market for the product had an unsatis

Industrial districts important to NE development

Refranor) with investments foreseen of US$30 million and US$15 million, respectively.

In Brazil's Northeast the principal development fostering entity is SUDENE (Superintendency for the Development of the Northeast). SUDENE was created in 1959 as an administratively autonomous unit, with headquarters in the city of Recife, capital of the State of Pernambuco, and under the jurisdiction of the Ministry of the Interior.

Uniting government and private iniciative SUDENE provides the Northeast with a strong incentive system, which aims at the modernization and expansion of already-existing industries, the increase and improvement of agricultural productivity and the attraction of new industries. The concessions made, through a number of exchange, fiscal and financial incentives, to agricultural and industrial projects complement the government's agroindustrial plan for the Northeast.

The territory covered by SUDENE activity includes the States of Maranhão, Piauí, Ceará, Rio Grande do Norte, Paraiba, Pernambuco, Alagoas, Sergipe, Bahia and part of Minas Gerais.

In the past few years, the government has invested about US$1 million in works of infrastructure, from which about US$200 thousand went for water treatment and US$800 thousand for sewers. There is an elevated water tank and a semi-raised tank to supply a distribution network of more than 12 kilometers. The sewage station is considered one of the most modern in Brazil and has a 15 km collection system. Well serviced by transportation facilities, the district has a railway network of 1.5 kilometers and good access to state and federal roads. The electricity network has a 5 thousand kVA capacity.

There are five plants in the installation stage: Algimar (industrialization of marine algae); Isonor (Styrofoam packaging); Ciol (Cashew nut oil); Quimindústria (Dyes); and Celene (Electroceramics).

There are six more firms in the reserve phase, two of them (Barum and

Paraiba

With two industrial districts – João Pessoa and Campina Grande – Paraíba has managed to attract 103 new firms: 42 functioning, 37 in implantation and 24 in the phase of project analysis. Because of this, industrial participation in the state revenue has passed from 8% to 11%, and SUDENE investments in the State now occupy the third place in the Northeast. The João Pessoa District, with close to 3.9 million square meters, is located alongside the most important highway of the region, 4 kilometers from the center of the city and 20 from the port of Cabedelo. It has a complete infrastructure base, communications and a community center with banking agencies, postal, telegraph and telex services, etc.

As part of SUDENE's fur.ction to attract new industry to its area, its Department of Industrialization lends technical assistance and financing to industrial districts, which are installed or about to be installed. The assistance granted covers everything from the elaboration of the project to the implantation of infrastructure and construction of industrial warehouses. With the exception of Maranhão and Pernambuco, all the other states received SUDENE collaboration on their industrial district projects.

Maceió is elaborating an administrative plan for its industrial district. The area of the project will be 1.8 million square meters, situated 3 kilometers from the center of Maceió. Four companies are already installed there.

Eleven years have passed since the initial discussions for the implantation of the Industrial District of Mundubim (Fortaleza). With 10 million square meters, the district is located south of the capital 15 kilometers from the center of Fortaleza, 12 km from its Airport and 22 km from the Port of Mucuripe.

The Campina Grande District is near a highway that links the city to the important Pernambucan commercial center of Caruaru. It is 1 kilometer from the João Suassuna Airport. It has access to the Federal Railway Network and has good infrastructure.

Piaui

Located 6 kilometers from the center of Teresina, in an area of 1.5 million square meters, this industrial district will be installed in four stages, of which the first is completed, with seven plants functioning and 4 in implantation.

Rio Grande do Norte

This year the district of Natal will begin to function. It is alongside the highway that links Natal to João Pessoa and Recife. The project for the district is being elaborated by technicians from the Department of Architecture of the Federal University of Pernambuco. About 5.3 million square meters of land have been reserved for the district.

Maranhão

The District of São Luís, in Maranhão, is in the project stage. It will be located on a 3.1 million square meter area. It will service small and medium-size companies. Its project is being executed by the Company of Industrial Districts and US$1 million will go towards infrastructure.

José Joaquim Guimarães Ramos, director/president of the company, says that the choice of the location of the District was determined by four factors: 1) development of domestic market; 2) proximity to the port; 3) possibility of pollution control; 4) compatibility of district plan with that of the urban zoning plan of São Luís.

There are 21 firms interested, of which 15 are of wood, vegetable oils, foods, beverages, non-ferrous and mechanic minerals, all belonging to local groups. Another district is being projected for support industries to the growing steel sector.

Pernambuco

There are three districts in Pernambuco-Cabo, Paulista and Curado, another in construction, that of São Lourenço and three industrial areas – Igarassu, Várzea and Prazeres/Imbiribeira.

The district of Cabo, with 3.8 million square meters, was the first to be installed in the Northeast. It has access to two important regional railroads.

The municipality of Cabo is linked by

the Railway Network of the Northeast to Alagoas, Rio Grande do Norte, Sergipe, Paraíba and Ceará. According to official sources, it has the infrastructure to attend to the 18 plants already installed.

That of Paulista, 18 kilometers from Recife, occupies 2.5 million square meters. It has basic infrastructure, rail access and 21 plants in function, all subsidiaries of Southern Brazilian firms or of multinationals. A workers' town will be constructed with funding from the National Housing Bank.

Curado is on the border of Recife with the municipality of Jaboatão. Although the district area is small, Curado has

better locational conditions than the other industrial districts in the region because of its proximity to the port of Recife, 14 kilometers away. Its 11 plants enjoy a good infrastructure base, rail access. The majority of the firms there come from Southern Brazil or are multinational subsidiaries.

Pernambuco also has a program for industrial modules, for medium or small operations, in the interior of the State. The industrial module areas of Igarassu, Várzea and Prazeres/Imbiribeira bring 34 manufacturers together at present. Both the industrial districts and the modules are directed by the Industrial Development Program.

BATHROOM TOWELS. Desina Exportadores e Importadores Ltda., Rua Cinderela 25, Caixa Postal 30641, São Paulo, S.P., Brasil. Cable: BUSINESS, São Paulo.

UPRIGHT PIANOS. Pianofatura Paulista S.A., Avenida Raimundo Pereira de Magal- hães 5028, Caixa Postal 3428, São Paulo, S.P., Brasil. Cable: PIANOFATURA.

The following Brazilian firms, listed by product lines, wish to export said items. All inter-
ested parties should contact the individual firms directly at the addresses given with each listing. APPLIANCES

DECOR ELECTRICAL HOUSEHOLD APPLIANCES

BEDROOM FURNITURE. Sena Group In(refrigerators, freezers, sewing machines,

ternational, 103 Park Avenue, Room 1110, irons). Toni Perry Comercial Exportadora

New York, New York 10017. Ltda., Caixa Postal 20578, Rua Baronesa de Itu 67, andar 3, 01221 São Paulo, S.P., Brasil.

BATHROOM FIXTURES, glazed wall tiles, AIR CONDITIONERS. IPL, Indústria Pereira

permanent plumbing fixtures for sanitary Lopes, São Carlos, São Paulo, Brasil.

use. Marano S.A., Avenida Conde de Boa HI-FI EQUIPMENT: speaker systems, am

Vista 121, Recife, Pernambuco, Brasil. Teleplifiers, tuners, receivers. Monymar Produ

phone: 22-2422 or 22-2449. tos Eletrônicos Ltda., Caixa Postal 30049, São Paulo, S.P., Brasil. Cable: "Marmony"

FLOOR TILES. Cerâmica Chiarelli S.A., Rua São Paulo. Telephone: 71-9327.

Domingos Brunelli 180, Caixa Postal 8667, Mogi-Guaçu, São Paulo, Brasil. Attention:

Mr. Oscar Chiarelli. Cable: CHIARELLI. AUTO PARTS

Telephone: 6-0404.

ASSORTED CANDIED FRUIT, also canned cherries. Marquis J.R. Mela Indústria de Frutas, Rua Juparana, 62, Rio de Janeiro,

CANNED SARDINES. Brasil Export International, Avenida Nilo Pecanha 50, Grupo 2411, Rio de Janeiro, RJ, Brasil.

TROPICAL FRUIT. Leão Rodrigues Indús- tria, Comércio e Exp. Ltda., Avenida Padre Almedia Garrett 557, 13.100 Campinas, São Paulo, Brasil.

CEREALS. Certus Importação Ltda., Avenida Franklin Roosevelt 23, s/lopas 2010, Rio de Janeiro, RJ, Brasil.

BATHROOM CABINETS and framed mir- rors. Antonio de Paula, Rua Guaranésia 314, apt. 31, 30.000 Belo Horizonte, Minas Gerais, Brasil.

ARTIFICIAL HONEY. Triangulo Azul S.A., Avenida São João 61-A, São Paulo, S.P., Brasil.

BEDS. Indústria e Comércio de Móveis Dir- cilda Ltda., Rua Reente Feijo 345, Santo ndre, São Paulo, Brasil. Telephone: 449- 6499 or 449-6604.

HEARTS OF PALM. Prince Indústria e Comécio Ltda., Avenida Rio Branco 37, grupo 602, 20.000 Rio de Janeiro, RJ, Brasil.

AUTO PARTS for VWs, also mufflers. Igpe- cograph, Avenida Antonio Piranga, 2800 Diadema, São Paulo, S.P., Brasil, VOLKSWAGEN & MERCEDES truck parts and accessories; 0.E.M. and complete re- placement parts. V.M. Vendas Marketing & Trading S.A., Al Nothmann 611, 01216 São Paulo, S.P., Brasil. Telephone: 221-4599. Telex: 1122704. Cable: EXPORTSALES. GEAR for gear boxes. Motogear S.A., Indús- tria de Engrenagens, Rua Guaipa 729, Vila Leopoldina, Caixa Postal 11.514, São Paulo, S.P., Brasil. Telephone: 260-8907, 252-0756. Attention: Sergio Grostein. BRAKE LININGS, disc pads. Lonaflex, Caixa Postal 9252, Avenida dos Suonomistas 896, Osasco, São Paulo, Brasil. LIGHTING EQUIPMENT, i.e., beams and headlights, for vehicles. Metalúrgica Rossi S.A., Caixa Postal 12.841, 04137 São Paulo, S.P., Brasil DIESEL MOTORS, also mini-tractors, mo- torized sprayers. Cia. Yanmar Distribuidora de Máquinas, Caixa Postal 542, São Paulo, S.P., Brasil. TRAILERS, trailer trucks, buses, loading beds, dump trucks. Grupo Industrial Rodo- viária, Departamento de Exportação, Rua Mateo Gianella 1442, Caixa Postal 145, 95.100 Caxias do Sul, Rio Grande do Sul, Brasil. DISC BRAKE PADS, auto parts and acces- sories. Brasil Trading Exporting Ltda., Rua Senador Dantas, 45B, Grupo 4401, ZC06, Rio de Janeiro, RJ, Brasil. CARS & PARTS. Volkswagen do Brasil S.A., Via Anchieta, Km. 235, São Bernardo do Campo, São Paulo, Brasil. Telex: 023803. Telephone: 43-1988. REPAIR PARTS. CIP, Companhia Industrial de Peças, Rua Barão de Ladário 890, São Paulo, S.P., Brasil. Telephone: 227-3967, 228- 1455 or 92-2352.

BRAZILIAN GOVERNMENT TRADE BUREAU
A Department of the Brazilian Consulate General in New York

551 Fifth Avenue, New York, N. Y. 10017 (212) 682-1055

Information on Brazil can also be obtained from:
Brazilian Embassy, 3006 Massachusetts Ave., N.W., Washington, D. C. 20008

(202) 797-0100
Brazilian Consulate General, 630 Fifth Avenue, New York, N. Y. 10020

(212) 757-3080
Brazilian Consulate, 3400 Montrose Boulevard, Houston, Texas 77006

(713) 526-3941
Brazilian Consulate General, 2 Canal Street, New Orleans, La. 70130

(504) 525-9874
Brazilian Consulate General, 20 N. Wacker Drive, Chicago, III. 60606

(312) 372-2176
Brazilian Consulate General, 5900 Wilshire Blvd., Los Angeles, Calif. 90038

(213) 937-4044
Brazilian Consulate, 100 N. Biscayne Blvd., Miami, Fla. 33132

(305) 377-1734

NAILS & TACKS. USM do Brasil S.A. Indústria e Comércio, Caixa Postal 953, São Paulo, S.P., Brasil.

KNIT FABRICS. Associação das Malharias do Nordeste do Estado do Sul, Rua Sinimbu 1912, Sala 2, Caxais do Sul, Rio Grande do Sul, Brasil.

HARDWARE for furniutre, for rolling window shades, for iron aluminum and wooden molding. Metalúrgica Soprano Ltda., Caixa Postal 167, 95.100 Caxais do Sul, Rio Grande do Sul, Brasil.

RAYON. Fabril S.A., Rua João Annes 143, São Paulo, S.P., Brasil.

WOODS, mahogany, pine, etc. Promex, Rua Barão do Triunfo 204, Caixa Postal 2334, Porto Alegre, Rio Grande do Sul, Brasil. WOOD for civil construction, furniture & carpentry. Madeireiros Exportadores Brasileiros, Madebrás, Caixa Postal 279, Curitiba, Paraná, Brasil. TOOL HANDLES, plywood, plywood doors, railroad cross ties, panelling, floor blocks. Sibisa Sirotsky Birmann S.A., Caixa Postal 2133, Curitiba, Paraná, Brasil. PAINT BRUSH HANDLES. Irmãos lochpe S.A., Indústria e Exportação, Caixa Postal 1870, 90.000 Porto Alegre, Rio Grande do Sul, Brasil.

NYLON, tergal, velvet, cotton, garbidine. Embaixador Dream S.A., Rua Catarina Braida 276, Mooca, São Paulo, S.P., Brasil.

FASTENING TOOLS. Mecanica Walsywa Ltda., Avenida Casa Verde 449/455, Caixa Postal 16.337, 02519 São Paulo, S.P., Brasil.

LEATHER SPORTS SHOES. Copela Trading Company, 307 Fifth Avenue, New York, N.Y. 10016.

LUMBER from the North and South of Brasil. MANASA, Madeira Nacional S.A., Avenida Rudge 752, 01134 São Paulo, S.P., Brasil. PLYWOOD. Indústria e Comércio de Madeiras Dutra Ltda., Rua do Gasômetro 205, São Paulo, S.P., Brasil.

LEATHER HANDBAGS, leather belts, men's, women's and children's shoes. MAMEDE Calçados e Artefatos de Couro Ltda., Rua General Osório 2316, Franca, São Paulo, Brasil.

CYLINDRICALLY TURNED PIECES, broom and mop handles, floor panels, floor blocks, wall panels, Paraná pine boards. Madeira del Pai S.A., Caixa Postal 2886, 80.000 Curitiba, Paraná.

PROFESSIONAL UNIFORMS, industrial gloves. Arcal S.A. Indústria do Vestuário, Caixa Postal 207, Distrito Industrial Dona Carlota, CEP 968000, Santa Cruz do Sul, Rio Grande do Sul, Brasil. Cable: ARCAL.

HYDRAULIC PUMPS. TRADEX S.A. Indústria e Comércio, Avenida Rio Branco 109, 2° andar, Rio de Janeiro, RJ, Brasil. PIG IRON, ferro siilcon, ferro manganese, wire rods (SAE 1010/1045, 5.5 at 12.7 MM), steel rod bars (of 3/8" at 1" SAE 1010/1050), alloy steel, steel wires, cast iron tubes and pipes (2" at 24"), special steel, iron for construction. PROMEX, Promotora de Exportação Ltda., Caixa Postal 2334, Pôrto Alegre, Rio Grande do Sul, Brasil. Telephone: 246450. HYDROGENATED CASTOR OIL; distilled, dehydrated castor oil fatty acid, recinoleic acid, estearic acid. Socinol Indústria e Comércio Ltda., Rua Ferreira Penteado 709, 2° andar, Caixa Postal 120, Campinas, São Paulo, Brasil.

PARQUET BLOCKS. Indústrias Cazaca Ltda., Caixa Postal 6718, Rua Marechal Floriano 96, andar 11, 80.000 Curitiba, Paraná. LUMBER from the Amazon region. Norte Madeiras Importação e Exportação Ltda., Rua Arcipreste Manoel Teodora 811, Belem, Pará, Brasil.

MEN'S FOOTWEAR. Calçados Terra S.A., Caixa Postal 163, 14.400 Franca, São Paulo, Brasil.

DENIM JACKETS & SLACKS. Grupo Cidrão Indústria e Comércio de Exportação, Avenida Euzébio Matoso 237, São Paulo, S.P., Brasil.

LUMBER. Overseas Trading Comércio Exterior S.A., Rua Libero Badaró 425, andar 29, conjunto 292, São Paulo, S.P., Brasil.

MEN'S & WOMEN'S LEATHER JACKETS. EMBRACIL, Empresa Brasileira de Comércio Internacional Ltda., Rua do Riachuelo 42, sala 1005, Rio de Janeiro, Rio de Janeiro, Brasil.

WOOD MOLDINGS. BRASEX, Brasil Exportadora Ltda., Caixa Postal 2722, Curitiba, Paraná, Brasil. Attention: Mr. Sedu Branco Junio. Telephone: 22-2911. Cable: BRASEX, Curitiba, Paraná, Brasil.

PIG IRON. Markup Consultores Associados, Rua Ministro Gabriel R. Passos 465, Moema, São Paulo, S.P., Brasil. Telex: (011) 21189.

CLOTHING, footwear. Soma, Escritórios Reunidos Ltda., Caixa Postal 723, Rua GuiTherme Rocha 381, conjunto 512, Fortaleza, Ceará, Brasil.

TIN in 99.8% bars, cassiterite of 70 to 75% content, titanium, rutile, chromite. Indústria Santos Silva Minérios e Estanho Ltda., Caixa Postal 1018, Rua Gaspar Viana 211, 66.000 Belém, Pará, Brasil.

REPUBLICATION Bonafide news media may republish any or all of the material in this Brazilian Bulletin, though a creditline is requested.

LEATHER BELTS, metal buckles and ladies' handbags. Netinho Ltda., Rua Javáes 202, Bom Retiro, São Paulo, Brasil.

Page 23

Paper and cellulose sector studied in Brazil

In fact, according to estimates realized in April of last year by the São Paulo Association of Paper and Cellulose, if all the projects announced for the installation of new production capacity were executed, Brazilian paper production in 1980 will reach a total of 4.1 million tons and that of chemical cellulose, 4.4 million tons. Theoretically, there would remain avilable an exportable surplus of 1.5 million tons of chemical cellulose. And still further, assuming that the national paper consumption does not surpass the level forecasted in the National Program (3.6 to 3.7 million tons), Brazil will have a paper production capacity, including the net export (that is, export minus import) of over 400 thousand tons.

viable if Brazil has a sufficient production of raw materials and follows the recommendations of the National Program of Paper and Cellulose, which are fundamental for implementation and concretization."

To reach proposed export goals it would be necessary to plant 30 Forest Districts in the upcoming years, covering a total in the order of 4.2 million hectares. The execution of the referredto program, which forecasts an export of 18 million tons of cellulose, in the year 2000, will require investments in the order of US$16.8 billion, 20% of which should go to the planting of the forests.

In 1980 Brazil's consumption of paper will be more than 3.6 million tons, while that of cellulose will be around 2.2 million tons, according to calculations made in a study for the National Paper and Cellulose Program, which was approved by the Federal Government last December, and calls for an additional production of 2 million tons of cellulose for export.

From 1965 to 1974 a rapid expansion occurred in the Brazilian market for such products. Expressive growth rates appeared during that period. If the government projects are confirméd in the beginning of the next decade Brazil will have a paper consumption corresponding to approximately 60 pounds per capita.

In the light of these projections the question arises as to whether the national industry will have conditions for attending to the demand foreseen, and if Brazil can become not only self-sufficient in paper, but also export 2 million tons of cellulose. For such a goal to be reached it has been estimated that fixed capital investments in the order of US$1.1 billion, excluding reforestation, will have to be made.

“The São Paulo Association of Paper and Cellulose Manufacturers," explains Horácio Cherkassky, president of the group, "did an analysis of the aforementioned Program, consulting beforehand the firms involved in the projects for the development of the sector and investigating the effectiveness of the execution of the plans. The results were surprising and reveal much more optimistic prospects than those planned by the Government."

Program viability

For Horácio Cherkassky, the verification of the viability of the plan requires a careful inspection and, an analysis under separate cover, of the two parts in which the National Paper and Cellulose Program was divided. “The first of them," says Cherkassky, "goes up to 1985, while the second would go up to the year 2000. For what we are checking, the initial phase of the plan presents optimistic possibilities for implementation. The following phase, that of the year 2000, will depend on a group of extremely important factors, mainly the forest areas, which form the basis of the second plan."

The Program for Export at a Long Term classified by the President of the São Paulo group as that of the year 2000 states that a program for cellulose export on a large scale will only be

Reforestation

If such goals were actually reached, the receipt of the sales abroad, at the present price level, will arrive at US$5.5 billion in the year 2000. On the other side, the study for the government program observes that "the effects on the domestic economy would be of great importance, especially with the creation of 200 thousand new jobs."

Today Brazil's paper and cellulose industry is concentrated in the four Southern States of São Paulo, Paraná, Santa Catarina and Rio Grande do Sul, which produce 95% of the cellulose. More than 80% of the paper comes from the plants in Paraná, Santa Catarina and São Paulo.

The Northeast is increasing its participation in the market with the production of cane bagasse and the State of Espirito Santo, north of Rio de Janeiro, is preparing to take a large piece of the pie, when the gigantic reserves and production lines of Aracruz and Cenibra enter into operation.

The reason why the paper and cellulose companies have traditionally stuck to the Southeast region of Brazil is that the largest natural reserves of pine are there, as well as the intensive reforestation activity, based on the eucalyptus tree.

Fourteen large firms are responsible for 75% of the cellulose production and the large manufacturers have increased their participation in the market in the last few years.

Today, Brazil is directing its development policy in the paper/cellulose sector toward the foreign market. The government is motivating the interest of international investors to help it develop this sector to the point of reaching its potential capacity.

The Council of the Americas will hold its annual Brazilian seminar in Brasília this year from June 27-30. As in previous years, representatives of U.S. firms or their Brazilian subsidiaries will meet with Brazilian government officials to discuss topics of interest to management in companies doing business in or with Brazil.

The seminar is co-sponsored in Brazil by the Instituto de Desenvolvimento Economico e Gerencial (IDEG). Representatives from each of the Federal Ministries will speak at the seminar.

announcement of the plans for the International Maritime Fair of Rio de Janeiro (RIOMAR) in October 1977.

With the increase of steel processing by 1980 to 2 million tons annu

nually (presently 1 million 800 thousand) and the new terms for construction and delivery of vessels, the upcoming fairs of Poseidonia, Norshiping and RIOMAR in 1977 will serve as points of entry for the realization of new contracts for the export of ships.

The projects approved by the Commission for the Concession of Fiscal Benefits to Special Export Programs (BEFIEX) and those in the study phase should represent a revenue of US$3 billion in the next ten wo years.

The newest participant in the system is the Fabrica Nacional de Motores (FNM), which recently signed an agreement to export US$400 million by 1985. Fiat of Italy is co-signer of the accord.

FNW plans to export CKD and SKD trucks, buses and automobiles. For the SKDs the vehicle gets components in the importer country, like upholstery, tires and batteries.

The revenue from the FNM program will be US$100 million.

The exports executed under the BEFIEX scheme represent 10.2% of the total of manufacturers exported in the first quarter of this year.

* Aiming at the manufacture in Brazil of teletype machines, the Minister of Communications recently signed a directive instructing Telebras to select a technology for such production among those available internationally.

For the national manufacture of teletype equipment the Minister established certain criteria, among which was that the manufacture should be entrusted to an industrial firm with Brazilian capital control. The firm is to be chosen by Telebras, after verification and evaluation of the components to be used for the manufacture of the equipment.

Among the considerations for the selection of a technology are: the technical-economic conditions involved in the transfer of the technology; preference given to suppliers of technology which have industrial subsidiaries in Brazil; qualitative and quantitative aspects of the components to be used, as well as the conditions of its supply at medium and long terms, through the firm installed in Brazil.

The government of the State of Bahia has already reserved an area of 150 thousand square meters at the Industrial Center of Aratu for the installation of a copper foundry which should enter into operation within three years. This would permit the country to reduce by close to 30% its consumption of copper, which in 1974 was responsible for expenditures in the order of US$540 million.

This information was released by the Department of Industry and Commerce, which added that the economic viability studies for the exploration of the reserves of copper of the Bahian region of Vale do Curaça. It is already certain that an annual production in the order of 60 thousand tons of the product will occur.

Within the month Fibase, a subsidiary of the National Bank for Economic Development, which at present has the control over the copper reserves of the Vale do Curaça, will begin to receive proposals from entrepreneurial groups for the exploration, concentration and mining of the copper.

Brazil's automobile industry produced a little more than 236 thousand vehciles in the first quarter of this year, representing a growth of 4.2% in relation to the production of the same period in 1975. For this past March the production was 2.6% greater than that of March 1975.

Regarding sales, the growth in the first quarter of this year was 4.5%. At home and abroad there were marketed 226,303 units. In March, the industry sold almost 88 thousand units.

The president of the Brazilian Association of the Electric and Electronics Industry (ABINEE) recently stated that, excluding the alterations made on projects approved by the Council of Industrial Development, the sector was responsible for 3.4% of the total value of projects approved in 1973; 4.2% in 1974 and 8.6% last year.

He added that during the first two months of this year the products of the

The international president of the Austin Construction Company, Mr. Marvin Epstein, said that the growth of the Brazilian economy should not be hurt by the problems existing at present, because they will be overcome. “For this reason, we will continue to invest in the country, where we have signed 20 contracts for various works."

Epstein explained that "Austin has been in the country for two years, and we believed that only in a term of five years would we reach the stage that we are at today. We are accompanying the growth of the country, which has been uniform for the last ten years, and we think that there will be no major problems."

By the end of the II Naval Construction Plan Brazilian shipyards will have the capacity to build new ships for export of around US$500 million. This was stated by the Vice-President of Esabras after the

Gem buyers and producers meet at FENAP

Brazil is one of the seven biggest gem producers in the world and as such it will hold its National Precious Stone Fair (FENAP) for the fifth consecutive year. FENAP V will take place from June 4 to 13, at the Palacio das Artes, in Belo Horizonte, Minas Gerais. Major Brazilian gem producers, as well as the largest buyers from all parts of the world are expected to attend. Eighty national and foreign exhibitors will display a full range of items.

As a parallel activity of FENAP V a seminar will be held on gemology and the marketing of stones and jewelry, with speeches to be given by Brazilian and foreign experts in the field.

ticularly rich in quartz deposits and exports great quantities of the quartz crystal used in the electronics industries of many countries, such as the United States, Japan, and England. The finest rutilated quartz in the world comes from Brazil, in the form of large masses of clear quartz shot through with needles of rutile. This is ideal for the making of spectacular beads.

Southern Brazil has a plentiful supply of the world's most spectacular geodes, many of them huge masses lined with fine dark purple amethyst crystals. These are usually broken into small pieces for sale to mineral specimen collectors. There is a great deal of good amethyst cutting crystal and also a great deal of yellow quartz. This is usually marketed as “Brazilian Topaz” Morion, or black quartz, is in some demand with cutters and there is every shade of smoky quartz in abundant supply. In 1962 a new pink quartz was discovered in Brazil. This is not to be confused with rose quartz, which is a pink massive quartz and is also in abundant supply in Brazil. The chrysoberyl, better known as the “cat's eye" only exists in Brazil and Ceylon.

buying manager in contact with suppliers. When the owner of the gem business comes in, he carries on an intensive few days of viewing and buying.

In such offices are found rare gem minerals, like the light brownish pink topaz, the yellow-orange topaz, the brazilianite, sphene and euclase.

Another active gem trading center is Teofilo-Otini, which is a crossroads of the gem world. This center is about 100 miles north of Governador Valadares and here gems are inspected for availability, quality and price.

Most of the large, well-established gem firms maintain sales agents abroad, especially in the United States, Europe and Japan.

Trading Centers

One of the most famous gem trading centers in Brazil is Governador Valadares, in the State of Minas Gerais. Here gems are traded everywhere and sophisticated buying and selling are done in small offices or trading shops. An office may be run by a

Gem Production

Brazil's gem production is quite varied and the country is known in all parts of the world for its precious stones. The center of the nation's production is the State of Minas Gerais, where the majority of the mines are located. With an increased product offering and the use of the most up-todate techniques of stone cutting and polishing Brazil's exports in this sector have increased considerably, as can be seen in the charts.

In terms of purchase each buyer country has its own preference. The Germans prefer the tourmaline, which accounts for the fact that 60 to 70% of Brazil's exports of this stone go to Germany.

Since the middle of the last decade Brazilian producers have exported a large amount of gems to businesses located in the German city of Idar-Oberstein, 100 kilometers from Frankfurt. This city is known throughout Europe as the "City of Stones" and there are over 5000 firms involved in stone cutting, polishing and the manufacture of jewelry. There are close ties between the lapidarians of Idar-Oberstein and the Brazilian gemologists. In fact, the first stone cutters and exporters of Brazilian stones were Germans from Idar-Oberstein, who had left their homeland in the last century, when stone reserves there became depleted.

In any case, the channeling of Brazilian stones through such a prestigious market has greatly increased the reputation of the national gems abroad.

The Stones

There are many fine gems found in Brazil, such as those of the tourmaline group, some of the finest aquamarines in the world and an abundant supply of emeralds. The world's finest diamonds also come from Brazil. The country is par

Page 24

In 1975, Varga showed sales in the order of US$25 million, an increase of 46.7% over 1974. In 1976, billing for the company should reach US$30 million.

The firm's directors believe one of the reasons for Varga's good results was the performance of the tractor industry, which is repeating a favorable pattern this year. This year Varga has launched a new product line of diesel engines, a flourishing subsector.

Varga began an expansion and industrial modernization project at the end of 1975, which requires an investment of US$15 million. The results of this project will begin to be felt in 1977, when the production of the firm will gain new stimulus.

The prospects for export are optimistic. In 1976, the firm plans to sell US$1.5 million to the North and South American markets.

Lonaflex S.A.

Lonaflex S.A., of Osasco, São Paulo, manufactures brake linings and brake pads and clutch linings.

Lonaflex has adjusted to the new reality by reducing expenses and lowering industrial costs. This year the firm's investments will be returned with the reduction of production costs and the diversification of products.

Indústria Orlando Stevaux

Indústria Orlando Stevaux, of Sacoma, São Paulo, felt the effects of the slump in the automobile industry at the beginning of 1975, but in the second half of the year, its production recuperated rapidly. CKD sales abroad increased considerably and the markets of several countries, principally

Indústria Arteb S.A.

Indústria Arteb S.A., of São Paulo, also had a recovery in the second half of 1975. It went ahead with its expansion plans and is continuing its favorable trend.

The year 1974, in relation to 1975, was excellent for the firm, but 1976 is expected to surpass the 1975 figures. The growth will be equivalent or a little higher than 1975.

Wapsa Auto-Peças S.A.

Wapsa has been in Brazil for nineteen years. In 1974, the São Paulo company invested US$2 million in machinery and equipment. It also expanded its plant to 26,500. m2 , producing alternators, generators, starters, ventilators and other electrical equipment for vehicles.

In 1973, Wapsa billed US$15 million, moving to US$23 million in 1974. There was a 34.5% increase in 1975 and the forecast for 1976 is for US$37 million.

Fran-SBC Industrias Mecanicas S.A.

Fran-SBC Industrias Mecanicas S.A., of São Bernardo do Campo, São Paulo, forecasts an increase of 3 to 5% in production and sales this year.

Fran-SBC, like the rest of the firms manufacturing filters, has been operating with idle capacity and the situation in 1976 is not much different. In 1975, this company had a drop of 20% in relation to 1974, which had surpassed all records for high consumption and elevated production levels. It must be remembered, however, that in the second half of 1975 assemblers decreased their inventory and the autoparts manufacturers began to return to normalcy.

Past & Future

The autoparts industry is working under great pressure. In the last five years, the autoparts grew at an annual rate of more than 20%. In 1975, it was around 3% and in 1976 it is expected to get to 5%.

With the pause in the hurried and frantic activity of the auto industry and lower growth rates registered, the sector's participants have a chance for realignment and the examination of new inroads for their products. In the case of the autoparts manufacturers, there is optimism, especially in the area of cargo transport and expansion of the export market. While growth rates may not reach the dizzy heights of the past, the sector is still moving out and still demands an important place in the national economy.

Ferropecas Villares S.A.

Ferropeças Villares, of São Bernardo do Campo, São Paulo, is associated with the Danna Corporation. At the beginning of 1975, the company invested US$22 million

Brazilian furniture gets foothold in market

From June 25 to 30, Brazilian furniture manufacturers will exhibit their product lines at the International Home Furnishings Market. The site of this show will be the National Furniture Mart, at 215 Lexington Avenue, in New York City. This is the fifth consecutive year that Brazil will participate in this show, thus consolidating its presence on the American furniture scene.

The Brazilian exhibitors will occupy the entire second floor of the National Furniture Mart. There will be twelve firms participating this year, using a space of 9100 square feet.

In the past the International Home Furnishings Market has provided the Brazilian furniture exporters with a good access to the American market and with helpful ideas on how to improve their products and marketing techniques.

The Brazilian furniture which has been exhibited is contemporary in design and in line with American consumer taste. The Brazilian pieces have compared favorably with the lines from Spain, France, Italy, Yugoslavia and Germany. The materials used - jacaranda wood and leather-have proven to be quite attractive to potential buyers who attend the fair. History

The success which the Brazilians are now enjoying with furniture exports has come through trial and error, but the

manufacturers have benefitted by their willingness to learn from past mistakes.

When Brazil first participated in the International Home Furnishings Market in 1972, about US $200,000 in sales were made. But due to problems of transport and improper drying of the wood, much of the furniture sold that year ended up being returned to warehouses. The defects in the furniture were the result of being exposed to artificially heated residences in North America, conditions different from those encountered in Brazil.

But in the following year the exporters came to the show with an improved product and a stringent quality control. The manufacturers also began to ship their products unassembled, which greatly reduced transport costs and was a deterrent against damages.

In that year, 1973, about 500 buyers were at the fair and the Brazilians managed to effect about US $800,000 in sales.

The following year, the results achieved were even more significant. In 1974 North American buyers purchased more than US $2 million worth of merchandise from the nine Brazilian firms which occupied almost a floor of the National Furniture Mart in New York.

From the point of view of the Brazilian Government Trade Bureau which, as an organ of Itamaraty (Ministry of External Relations), sponsors the show, the major

objective is to bring the Brazilian exporter in contact with the American market.

A retrospective evaluation would show that thanks to this fair the Brazilian manufacturers have greatly improved their export product. Being able to judge the market first-hand by speaking with American buyers has been invaluable in the evolution of the Brazilian furniture. Furthermore, the contacts made at this show have extensive value in terms of the marketing of the product itself. Last year's experience proved this out.

In the past some manufacturers which participated in the show were: Lafer (living room sets of leather and wood); Italma (living room sets, easy chairs and desks); Bergamo (shelves and chest of drawers); Escriba (office furniture); Willo (shelves and unfinished chest of drawers); Jules (multi-use furniture); Mobilia Contemporanea (chairs).

Price

One of the major obstacles facing a newcomer to any market is that of price. A detailed scrutiny of the American market was necessary in order to reach conclusions that would benefit saleability on the retail market.

The furniture, from the beginning of the export move, was leaving the country at competitive prices mainly due to the comparatively low cost of labor and raw materials. Transport costs, which were previously high, were lowered with the adoption of the breakdown system of shipping the products.

Two Brazilian companies - Lafer and Italma-attacked the problem head on. They began a system of opening their own stores to effect the direct retail sale of their products, thus eliminating the middleman and the added cost which that entailed. Thus, the Brazilian product was made available to the American consumer at a more than reasonable price.

Lafer

Thanks to its innovative approach to the American market Lafer furniture has become well known. Its distributorship network in the United States is known as Brazil Contempo. By directly importing all of its upholstered leather furniture Brazil Contempo has managed to distinguish itself in the American market. Brazil Contempo sells directly to the public through its own showrooms, in 32 stores in the United States, proof of the success of the marketing method which brings Brazilian furniture directly from the importer to the consumer.

The total Lafer production accounts for US $20 million annually. Of this production 50% is exported. The São Paulo-based firm is the largest manufacturer of upholstered furniture in South America. The export product consists exclusively of furniture made of Brazilian hardwoods and leather.

Quality control for the Lafer product is strict. Each new furniture concept created at Lafer is tested and refined by staff engineers in the design studio. The woods used in the furniture are all kiln-dried and hand finished. Escriba

Another Brazilian furniture group which has found acceptance on the American market is Escriba. Escriba was incorporated in Brazil approximately 14 years ago. The

factory is located in the State of São Paulo. The plant contains production facilities for upholstering and for wood, aluminum and steel framing. It also houses support services in planning, product engineering, quality control and prototype development.

In terms of sales Escriba grew over 300% in the four years from 1971 to 1975. Escriba export sales have risen from virtually nothing in 1972 to over US $200,000 in 1975. Exports were made to the United States, England, Japan, Germany, Israel and Panama.

The Escriba product concentrates on office furniture. Their products include desks and components with frames of aluminum, steel or solid wood. These desks are completely “knock-down.'

The successful marketing procedures of companies like Lafer and Escriba have served as a format for other Brazilian

furniture producers and exporters. In the case of Lafer and Italma (in the United States under "Brazil Design" trademark), the methods of direct sale to the consumer have provided a viable alternative for the marketing of the Brazilian product. In addition, the tighter means of marketing provide a more concrete base of supply, thus giving way to a more steady stream of the exported manufactured products. The warehousing of the product in the country of sale also allows quicker delivery time, which is a definite advantage to the consumer

What has happened with the export of Brazilian furniture since 1972 is a true example of profiting from experience. The present situation of the Brazilian furniture on the American market is enviable and serves as a model for the marketing of other export products.

Brazil's banks abroad mirror progress

There are four Brazilian banks that operate in New York, through their agencies or branches: Banco do Brasil S.A., Banco do Estado de São Paulo, Banco Real S.A. and the Banco Mercantil de São Paulo S.A.

These banks - which are commonly the leaders of large Brazilian financial groups — have expanded their network in recent years and as part of this expansion they have opened full branches or agencies abroad.

The directors of these agencies were interviewed by the Brazilian Bulletin and they discussed the functions of their institutions at home and abroad.

furthers the consultation process through its organs in Brazil.

“There is almost no sector of the economy in which we have not dealt," says Mr. Kowarick. “The high level of economic activity in the majority of other countries, together with the growing international interest in Brazil, has contributed positively towards the attainment of new records in terms of volume of foreign trade and inflow of capital from abroad."

The Banco do Brasil established itself in New York as a full branch in April 1969. “It was natural that we come here," says Lino Otto Bohn, General Manager of the New York branch of the bank. "because the United States was Brazil's first trade partner."

According to Mr. Bohn, the Banco do Brasil has been an important tool for the increase of Brazilian exports to the United States. In fact, Brazil's economic move into a greater number of areas in the foreign sector has been accompanied by the growth of the Banco do Brasil, which within two years has opened fifty agencies abroad.

The Banco do Brasil retains a unique position since it is the banking agency of the Brazilian government abroad and as such acts as the delegation of the Brazilian treasury.

Although as a full branch, the Banco do Brasil is authorized to deal in domestic banking functions in New York, Lino Bohn believes that "a bank abroad should limit these functions so as not to compete with local banks."

Bohn pointed out the successful performance of the Banco do Brasil. He said, “The Banco do Brasil is the first bank in the world in terms of profits. In terms of capital reserves only Citibank is larger in the United States and in assets three American banks outrank us."

Bohn sees the major function of his bank as one of strengthening bilateral financial relations. The bank is a consulting source for information on the fiscal system in Brazil and provides financing and direction for investment in Brazil. It is also involved in the floating of bonds and in the performance of other financial activities of the federal system.

Banco do Estado de São Paulo S.A.

“Brazil is still growing. We know our necessities and our shortcomings. Brazil is really the country of the future. The possibilities are numerous and the doors are always open for those who want to share in our development." These are the words of Elmo de Araujo Camões of the Banco do Estado de São Paulo, who feels that the interest in investment in Brazil is always increasing. He points out that there is a vast mechanism in Brazil for financing and that the Brazilian banks abroad serve as an aide in disseminating information on the available formulas for investment in Brazil.

The Banco do Estado de São Paulo was formed as

an agency in New York in November 1973. Previously the Bank had a representative office in New York. The Bank works in the international market and Mr. Camões sees the function of the bank as multilateral. He feels that the results obtained in the short time in which the bank has been in New York have been “exceptional", even though there is still the need to create a "tradition" in the sector here.

As part of its function to help the Brazilian government in its stimulation of exports the bank's agency participates in trade fairs where Brazilian manufacturers are showing their products.

The bank also acts as a middleman in bringing the business interests of Brazilian firms together with those of American firms.

With agencies in New York and Los Angeles, the Banco do Estado de São Paulo is considering the opening of agencies or representative offices in Paraguay, Paris or Brussels, the Middle East, Mexico and Canada. Banco Mercantil de São Paulo S.A.

"We are interested in the expansion of international trade," says Alberto Freire Kowarick of the Banco Mercantil de São Paulo.

The Bank's agency, which was established in July 1974, is in full expansion of its financial activities. It helps to finance the export/import activity between Brazil and the United States, as well as aiding in the export of Brazilian products to other areas. One of its special involvements is its assistance in the import of petroleum for Petrobras.

Mr. Kowarick emphasizes his bank's role in helping and consulting firms or individuals wishing to invest in Brazil. With initial contacts made here, the bank

Banco Real S.A.

Sebastião Borges, the Regional Director of the Banco Real, sees the function of a Brazilian bank abroad as being “a two-way street.” He says, “We are not looking for a unilateral relationship. Our bank is not here only to stimulate and create opportunities for Brazil. We are involved in all types of financial transactions within the United States."

The Banco Real was originally set up in New York as a representative office in New York in 1957. In 1964 it was given a charter to become a full branch. According to Mr. Borges, the bank came to New York as part of a natural expansion abroad, to stimulate foreign trade and to facilitate the foreign market for its clients.

The results achieved by the Banco Real since its inception in the United States have been good. “With Brazil's economic maturity, our growth has been in the right direction," says Mr. Borges.

The Banco Real acts principally in the financing of trade abroad and in direct and indirect loans to Brazil. In one year's time over US$1.5 billion was transacted in loans. (Last quarter of 1974 to last quarter of 1975.)

Mr. Borges believes that an important function of the bank is as a nucleus of information, in the sense of serving those firms interested in investing in Brazil or in importing products from there. The Bank maintains a consulting group, with experts in both multinational and binational dealings.

The Banco Real has three separate groups which deal with different areas: the Corporate Group, the Institutional Group and the Money Market Group.

The aim of the Banco Real is to give the greatest amount of assistance to all its clients, including the government. It acts as an intermediary and a financier.

"We seek expansion in elastic way... always with the interest of our clients at the source,' says Borges.

of engineering in the industrial evolution of the member-states.

Brazil will be the site for the II PanAmerican Exhibition of Engineering and Industry, to be held in Rio de Janeiro from October 3 to 8, 1976. This event will take place simultaneously with the XIV Convention of UPADI and the VII Pan-American Congress on Engineering Education. During the period mentioned, Rio de Janeiro will accordingly be transformed into the honorary center for engineering in the Americas.

The II Pan-American Exhibition of Engineering and Industry, due to its importance and scope, will provide an excellent opportunity for engineering and industry in this hemisphere to bear out the exceptionally high level of technological evolution attained by these activities. The event will furthermore encourage the interchange of products between the various exhibiting countries, thus opening up possibilities of new markets.

The II Pan-American Exhibition of Engineering and Industry is being promoted and sponsored by FEBRAE (Brazilian Federation of Associations of Engineers), which is a non-profit organization. Its headquarters is located in Rio de Janeiro, and it brings

together 45 professional associations from all over Brazil.

The first exhibition of this kind was held in Buenos Aires, in 1970. A big success, it served as a veritable milestone in the interchange of information in the fields of engineering and industry. The current event will reflect the effort and achievements of industry and technology of the 25 countries whose engineering activities are bound together under the aegis of the PanAmerican Union of Associations of Engineers (UPADI).

The II Pan-American Exhibition of Engineering and Industry has three fundamental objectives: 1) To reveal the degree of technological

development attained by the industrial establishment of the exhibiting coun

tries and firms. 2) To provide the broadest possible

interchange of technical and professional information between engineers and industrialists, for purposes including the opening up and winning of new markets for exhibitors' know-how and

manufactures. 3) To bear out the importance of the role

General Information

The II Pan-American Exhibition of Engineering and Industry will take place at the Convention Center of the Hotel NacionalRio, in Rio de Janeiro, which was specifically designed to house major congresses of international scope.

Exhibitors in the convention can be: countries, government enterprises, jointventures, industrial and commercial companies, official agencies, Brazilian or foreign, featuring projects or detailed layouts of executed engineering works, or those to be executed, or industrial products of advanced technology.

The three official languages of the Exhibition will be Portuguese, Spanish and English

More information on the exhibit can be obtained from: COMPACTA, Constuções, Montagens e Instalações Ltda., Avenida Rio Branco, 151, sala 1803, Rio de Janeiro, RJ, Brasil. (Telephone: (021) 231-2390 and 2423455; Telex: 02123023 FENIT RIO).

Page 25

SHOCK ABSORBERS, accessories for VW, mufflers for any type of car. STILL S.A., Sociedade Tecnica de Instalacoes Indústriais, Praça da Republica 497, 1° andar, Caixa Postal 01045, São Paulo, S.P., Brasil.

AUTO PARTS. CIP, Companhia Industrial de Peças, Avenida Monteiro Lobato 2397, Caixa Postal 153, 07000, Guarulhos, São Paulo, Brasil.

Information on Brazil can also be obtained from:
Brazilian Embassy, 3006 Massachusetts Ave., N.W., Washington, D. C. 20008

(202) 797-0100
Brazilian Consulate General, 630 Fifth Avenue, New York, N. Y. 10020

(212) 757-3080 Brazilian Consulate, 3400 Montrose Boulevard, Houston, Texas 77006

(713) 526-3941 Brazilian Consulate General, 2 Canal Street, New Orleans, La. 70130

(504) 525-9874 Brazilian Consulate General, 20 N. Wacker Drive, Chicago, III. 60606

(312) 372-2176 Brazilian Consulate General, 5900 Wilshire Blvd., Los Angeles, Calif. 90038

(213) 937-4044 Brazilian Consulate, 100 N. Biscayne Blvd., Miami, Fla. 33132

(305) 377-1734

DIESEL MOTORS, Cia. Yamar Distribuidora de Maquinas, Caixa Postal 542, São Paulo, S.P., Brasil.

DISC BRAKE PADS, auto parts and accessories. Brasil Trading Exporting Ltda.. Rua Senador Dantas 45B. Grupo 4401, ZC-06, Rio de Janeiro, RJ, Brasil

FLOOR TILES, mosaic cubes. Ceramica Chiarelli S.A., Rua Domingos Brunelli 180, Caixa Postal 8687. Mogi-Guaçu, São Paulo, Brasil. Attention: Mr. Oscar Chiarelli. Cable: CHIARELLI. Telephone: 6-0404.

TIN in 99.8% bars, cassiterite of 70 to 75% content, titanium, rutile, chromite. Industria Santos Silva Minerios e Estanho Ltda., Caixa Postal 1018, Rua Gaspar Viana 211, 66.000 Belem, Pará, Brasil.

KNIT FABRICS. Associacao das Malharias do Nordeste do Estado do Rio Grande do Sul, Rua Sinimbu 1912, sala 2, Caxias do Sul, Rio Grande do Sul, Brasil.

OFFICE FURNITURE. Escriba, 12 Timber Lane, Westport, Connecticut 06880. Telephone: (212) 582-9119 or (203) 227-2466. Telex: 965836.

RAYON. Fabril Scavone S.A., Rua João Annes 143, São Paulo, S.P., Brasil.

BUNK BEDS, colonial style. Brazil Toigo, 429 South Cloverdale Ave., Los Angeles, California 90036. Telephone: (213) 936-9484.

PIG IRON. Markup Consultores Associados, Rua Ministro Gabriel R. Passos 465, Moema, São Paulo, S.P., Brasil. Telex: (011) 21189. HYDROGENATED CASTOR OIL; distilled, dehydrated castor oil fatty acid, recinoleic acid, estearic acid. Socinol Industria e Comercio Ltda., Rua Ferreira Penteado 709, 2° andar, Caixa Postal 120, Campinas, São Paulo, Brasil. PIG IRON, ferro silicon, ferro manganese wire rods (SAE 1010/1045, 5.5 at 12.7 MM), steel rod bars (of 3/8" at 1" SAE 1010/1050), alloy steel, steel wires, cast iron tubes and pipes (2" at 24"), special steel, iron for construction. PROMEX, Promotora de Exportação Ltda., Caixa Postal 2334, Porto Alegre, Rio Grande do Sul, Brasil. Telephone: 246450.

GREY COTTON SHEETING, cotton yarns, printed cotton, dyed cotton. Textil Brasilminas Ltda., Caixa Postal 965, Rua Bahia 360, andar 9, Belo Horizonte, Minas Gerais, Brasil.

WOOL POLYESTER, viscose, pure wool, other textiles for men's clothing. S.A. Moinha Santista, Caixa Postal 507, Rua Boa Vista 150, São Paulo, S.P., Brasil.

KNIT FABRICS. Grande Tinturaria Paulistana S.A., Rua Restinga 113, Tatuape, São Paulo, Brasil. Attention: Mr. Jõao Adib Numes. Telephone: 295-0842.

STEEL ANGLES, steel flat bars, Perfilados NMF Ind. Com. S.A., Avenida do Contorno 4451, 30.000 Belo Horizonte, Minas Gerais, Brasil. Attention: Mr. Sebastião Franca Drummond.

PAINT BRUSH HANDLES. Irmãos lochpe S.A. Indústria e Exportação, Caixa Postal 1870, 90.000 Porto Alegre, Rio Grande do Sul, Brasil.

WOVEN JUTE FABRICS. Cia. Textil de Castanhal, Rua 15 de novembro 226, Belem. Para, Brasil. Cable: COTEXTIL. Telephone: 1802.

CASTINGS IN DUCTILE GRAY IRON, according to SAE or ASTM or DIN standards, weighing up to 110 lbs., custom made, any shape, size, quantity. NOMSA S.A., Avenida Franklin Roosevelt 39, Rio de Janeiro, RJ, Brasil. Cable: LARUPA. Telex: 21/22737.

VALVES for piping. boilers, vats and the like, including pressure reducing valves; also, faucets, taps and stopcocks. Fligor S.A. Ind. de Valvulas e Componentes para Refrigeracao, Rua Fernandes Moreira 1293, Santo Amaro, São Paulo, Caixa Postal 1642, SP-1, Brasil. Telephone: 61-1568 or 267-4268.

COTTON, also silk. Tecelagem de Seda e de Algodão de Pernambuco, Avenida Visconde de Suassuna 393, 50.000 Recife, Pernambuco, Brasil.

GRANITE, marble, quartzite, in blocks and slabs, rough or finished. NOMASA S.A., Avenida Franklin Roosevelt 39, Rio de Janeiro, RJ, Brasil. Cable: LARUPA. Telex: 21/22737.

NAILS & TACKS. USM do Brasil S.A. Indústria e Comércio, Caixa Postal 953, São Paulo, S.P., Brasil.

REPUBLICATION Bonafide news media may republish any or all of the material in this Brazilian Bulletin, though a creditline is requested.

PACKAGING MATERIALS, made of polypropylene, for cereals, chemical products, fertilizers, etc. Cilermando G. Cabral, CATA (Cia. Amazonia Textil de Amiagem), Avenida Bernardo Sayão 138, Belem, Pará, Brasil.

HARDWARE for furniture, for rolling window shades, for iron, aluminum and wooden molding. Metalurgica Soprano Ltda., Caixa Postal 167, 95.100 Caxias do Sul, Rio Grande do Sul, Brasil.

be made through association with the Rio Grande do Sul group Maissonnave.

Brazil's reliance on petroleum for energy, now about 46%, will drop to 37% by 1985, according to the Minister of Mines and Energy. The Minister said that this change will be brought about by the use of more efficient engines, greater reliance on rail transport and the increased use of alternative energy sources.

Hydro-electric energy, which now provides 22% of the country's energy needs, will provide 32% by 1985. The Minister said that Brazil is investing heavily in generating capacity and predicted that the nation's current generating capacity of 20 million kilowatts will increase to 51 million kilowatts by 1985.

The Brazilian Government recently approved the allotment of about US $30 million to the Incentive Fund for the National Tourism Sector. This will permit the National Tourism Council to approve new projects for the construction of hotels and the execution of tourism services. This information was released by the President of Embratur (Brazil's official tourism organization).

products. This was confirmed last mon by the head of the Italian commerce delegation which visited Sao Paulo. To sectors of food products, beverages an aluminum are preferred by the Italia investors and the first investmen's should be made in canned goods ar.. cashew nuts. The delegation announced that the minimum maturation time ! these projects is 18 months. The Italia group consisted of seven entrepreneurs representing different areas of interest.

Brazil's Eduardo Gomes International Airport in Manaus was recently inaugurated, equipped to receive large aircraft, such as the Concorde and the jumbo jets. In the southeastern part of the country the International Airport of Rio de Janeiro is expected to have, within two years, the largest landing and take-off runway in Brazil, costing over US $50 million.

At the close of the International Investment Seminar held in Porto Alegre recently the director of the National Economic Development Bank (BNDE) announced that his bank would release about US $4 billion for use by national firms in projects which aim at import substitution and absorption of technology in the basic sectors of the national economy.

Of the US $4 billion, about 70% will go to capital goods, equipment and basic inputs.

A plan of technical support and train ing has been formulated for the decreas in the pollution of Sao Paulo rivers by the sugar mills. This information was released by the president of the Cooperative of Producers of Sugar and Alcohol According to the information, 90 percen' of the member firms of the Cooperative already have control systems, but these systems are in need of revamping. The solution found for the pollution problem. was the organization of a training course with the participation of engineers fror the sugar industry. This course wi concentrate mainly on the operation o evaporators, barometric condensors and vats, as well as units which drain residu water.

In 1975 Brazil was the fourth largest recipient of investments from West Germany, surpassing France, Switzerland, Canada and other industrialized countries. The investments made in Brazil reached 450 million German marks, behind investments in the United States (748 million marks), Great Britain (616 million) and Belgium-Luxembourg (537 million).

This information was released during the Brazil Investment Seminar, held at Stuttgart and organized by the State of Baden-Wurtemberg.

The French state firm C.D.F. Chimie will invest US $80 to 100 million in two low-density polyethylene units, to be located in the III Brazilian Petrochemical Pole, planned for the State of Rio Grande do Sul.

The investment of French capital will

Page 26

Programs Foster development of the Amazon

With more than half of the area of Brazil, close to 25 thousand kilometers of navigable rivers and the biggest tropical jungle in the world, the Amazon region, inhabited by a sparse population that does not reach 8 million, continues to be the great Brazilian challenge.

To confront this challenge, the Program for Agriculture/Cattle Raising and Agromineral Poles in the Amazon (POLAMAZONIA) was created, under the jurisdiction of SUDAM (Superintendency for the Development of the Amazon) and SUDECO (Superintendency for the Development of the Central-West). POLAMAZONIA has fifteen work fronts in the Amazon region-in Acre, Rondonia, northern Mato Grosso. Amazonas, Roraima, Amapa, Para, Goias and western Maranhao.

Polamazonia

POLAMAZONIA was set up to promote the integrated utilization of the agricultural/cattle raising, agromineral, forest and mineral resources in the priority areas of the Amazon.

To facilitate the execution of its program, POLAMAZONIA selected its fifteen poles. Ten of these poles are located in the SUDAM area and five fall under SUDECO jurisdiction. For each one of these poles, a socio-economic analysis was made, pointing up the more acute obstacles and regional problems. A strategy was established which would integrate all activities and concentrate efforts to achieve the objectives of the program as easily as possible.

The fifteen poles are meant to serve as centers for the transmission of the benefits of progress and development to remote and isolated regions.

Although it occupies close to 3/5 of Brazil's territory, the Amazon region, as was emphasized in the Presidential Decree which created POLAMAZONIA, contains only between 7 and 8% of the nation's population. The inhabitants in the Amazon are mainly found concentrated in urban cores at the edges to the region's great rivers.

The creation of POLAMAZONIA was the result of in depth studies, which permitted the identification in the Amazon of those areas which present the greatest advantages for productive occupation and development. These were the areas chosen to be priority locations for government programming. They offer the best potential utilization of mineral resources, soil and flora.

The old claim that the Amazon hid all – or almost all of the known minerals has been confirmed through the technology of the Radar for the Amazon Project (RADAM), which is conducting the complete survey of the potential of the Amazon subsoil. Among the mineral beds thus far identified and demarcated by RADAM, there are distinguished new occurrences of iron, manganese, tin, gold, chromium. limestone, nickel, etc., in the regions of Carajas and Tapajos, both in the State of Para.

In the south of Para, without a doubt the greatest mineral storehouse of the area, ferriferous deposits are found in the Serra dos Carajas, with reserves estimated at about 18 billion cubic tons. These reserves will be explored commercially after 1977/ 78, with a production that will reach close to 45 million tons in 1985.

In the same area, SUDAM is promoting the study of coal reserves and the feasibility of exploration. If estimates are confirmed, this region could become vital to Brazil's steel industry.

Goals

A proper sanitation network for the already-existent communities in the Amazon is one of the priority goals of POLAMAZONIA. In the more important cities, POLAMAZONIA is taking care of the installation of sewer and water systems and the improvement of the ones that already exist

The POLAMAZONIA program fits in perfectly with the goals of the II National Development Plan, in that it provides for well-planned occupation of the Northern region of the country.

The Program of Selected Cultivation will permit the establishment of permanent holdings for the cultivation of such crops as rubber, sugar, cocoa, dende, fruit, pepper and rice. Such moves are further steps in making fringe regions into economically viable parts of the national development. The Program provides research to back up each of its projects.

In addition, the incentives of SUDAM will increase the bovine herd of the Amazon by 5,000,000 head by the end of this decade.

Brazil ranks high in the production of cocoa

Exports

Consumer statistics show that world demand for cocoa will grow by one million tons within the next 10 years. Cocoa bean exports from Brazil have been registering a growing trend in the last eight years.

The major consumers of Brazilian cocoa are the United States, Argentina, Rumania, Spain, Bulgaria, the USSR, the Netherlands, Yugoslavia, South Africa and Canada.

By 1980, Brazil will be approaching first place on the list of the major world producers of cocoa. In terms of production and full processing, the country is moving ahead at a quick pace. This movement is largely due to the advantages afforded by good soil and climate and the availability of land for expansion.

Predictions call for 5,000,000 bags of cocoa by 1980, if not before. Quality levels are rising, thanks to the support of the most precise and modern technology. In addition, the percentage of fully processed products, compared with the exports in the form of beans, is continually on the rise.

In the 1975/76 harvest production reached a record volume of 4.5 million sacks, representing about US $315 million in export revenue. Technicians from CEPLAC (Executive Commission for the Economic Rural Plan for Cocoa Cultivation Recovery) estimate that the product will guarantee US $1 billion in revenue by 1985.

Production

Brazil has 1.5 million hectares of land reserved for the planting of cocoa in the Amazon region alone. It is the only major world cocoa producer with large areas of land suitable for expansion of cultivation of the product

The expansion of production is vital to offset the pressure of high prices which forces consumer countries to seek cocoa substitutes.

CEPLAC and the Brazilian government are working for the basic modernization of cocoa cultivation in Southern Bahia and the development of projects for tropical agriculture, especially in the Amazon region.

CEPLAC is today one of the biggest organizations in the world providing technical and financcial assistance to agricultural producers. It set its Research Center (CEPEC) with modern laboratory buildings and equipment, as well as a library and computers.

In 1965, CEPLAC began its fertilizer program. At that time virtually no fertilizers were being used, but by 1972 about 40,000 tons of chemical fertilizers were applied in the cocoa region.

As part of its activities, CEPLAC has dealt with practical means of combating the principal disease affecting cocoa in the area - the grey rot. The organization also introduced to producers techniques, such as pruning, liming and the planting of early-developing hybrids with high yields. All of these efforts resulted in a great improvement in the quantity, and most especially, in the quality of the cocoa produced

Along with the activity of CEPLAC in the sector, the government has introduced a number of programs. It is planning a US $3 billion project called the National Program for the Expansion of Cocoa Cultivation (PROCACAU), which, according to technicians, will allow the country to place 800 thousand tons of cocoa on the international market by 1985. The execution of the project will demand resources amounting to 60 times the current budgetary allowance of CEPLAC.

PROCACAU represents the synthesis of the experience collected by CEPLAC since its creation in 1957. The new program gives priority to the increase of the productivity of the cultivated areas, which is expected to double. In experimental areas, CEPLAC has already achieved production records of 3 thousand kilos per hectare.

PROCACAU will concentrate its efforts in two priority areas: the Amazon region and southern Bahia. Although the Amazon is the principal focus for agricultural expansion at long term, the region of southern Bahia will continue to occupy the position as the major area for future investments in the sector. Encompassing 90 thousand square kilometers, with a total of 2 million inhabitants, the region is responsible for 96% of the national cocoa production.

In the Amazon region, seven areas have been designated in the States of Para, Goias and the territory of Rondonia for the future production of cocoa. The most important cultivation project in the region is in Burareiro, Rondonia, where 1200 hectares are being cultivated.

The main difficulty in the Amazon at the moment is the acquisition of credit for cultivators, the majority of whom own 4 to 10 hectares of land and do not have landowners title.

Therefore, it will be necessary to create a new management model for the cocoa growing region. Two years ago the Cocoa Producers Cooperative initiated plans to grant incentives for the fusion of properties in the regions of southern Bahia to guarantee greater yields in cultivation.

costs are higher, they are compensated by the elevated prices of their product on the international market. The average price of cocoa beans registered in 1975 was 1.3% higher than that of 1974.

The 1975 exchange receipts obtained from cocoa exports reached US $315 million, more than 100% increase over 1973.

The euphoria over the cultivation of cocoa is justified if one considers two basic factors: the behavior of the foreign market and the expansion of the industrial park connected with the sector. On one hand, the market prospects continue to be excellent. At the end of the last harvest (October) prices were still rising. On the other hand, in the last five years, the industrial sector of the cocoa activity registered a growth of 50%. It is calculated that the cocoa industry in Brazil will grow at an annual rate of 15%.

To sum up, Brazilian cocoa is strengthening its situation all the time and the country is accordingly recovering its position of world leadership. Ambitious plans for technological improvements and higher yields are being implemented, thus guaranteeing the growth and development of the cocoa sector.

Favorable Market

Cocoa has surmounted the difficulties which arose from the international economic crisis of 1973. In the cocoagrowing region, producers are optimistic about the future. Although their production

Brazil's shipbuilding sector reaches maturity

The steel processing capacity of the Brazilian naval construction industry will double this year. The evolution of this indicator reflects the accelerated rhythm of the expansion of the sector, which already places Brazil in eighth place on the list of major world shipbuilders. By 1980, the country should be closer still to the principal world producers, following only Great Britain, Japan, West Germany and Sweden.

The great impetus of the naval construction industry in Brazil, verified in the last few years, is fundamentally due to the implementation of government-defined programs for the sector. At present, the II Naval Construction Program is in execution, covering the 1975/79 period, under the jurisdiction of the National Superintendency of the Merchant Marine (SUNAMAN).

The II Naval Construction Program has expenditures in the order of US $3 billion 300 million, at 1975 prices. It foresees the order of 150 new ships, to be used for coastal navigation and international traffic. These ships, added to those already in

construction (1 million 300 thousand dwt) will enable the Brazilian Merchant Marine to increase its capacity from 4 million dwt, at the end of 1974, to 10 million dwt by 1980. The II Naval Construction Program also makes allowances on the capacity of the national shipyards for the export of vessels.

The II Naval Construction Program is three times greater than the first one. Besides the expansion of the shipbuilding firms, the Il Program is promoting a considerable increase in the activity of the whole capital goods industry in Brazil. The total steel consumption is foreseen at close to 1 million tons. The majority of the components for the ship construction can be manufactured by the national industry.

As a result of the extent of the II Naval Construction Program, two propeller factories are being installed in Brazil, with a total capacity of around two thousand tons annually. There has also been started a firm specializing in the manufacture of naval equipment, producing, among others,

hatches, hooks, reels, rudders, portholes and special valves.

One of the principal objectives of the expansion of the Brazilian naval construction industry is the modernization and the strengthening of the national merchant fleet. The Program intends to maintain the proportionate participation of the Brazilian flag in the general cargo governed by bilateral accords.

The II Program hopes to substitute, as much as possible, the chartered ships which have absorbed a high volume of Brazil's foreign exchange credits. It is estimated that the freight generated by the II Naval Construction Program will create foreign exchange credit savings of about US $1 billion.

Among the other positive effects of the II Naval Construction Program, there is its contribution to the reorientation of intermodal transport distribution. The II Program has also contributed to the increase of river navigation in Brazil, with an overall investment in the order of US $150 million,

at 1975 prices.

Another contribution of the II Naval Constructon Program is the improvement of the efficiency of port operation, with an investment of over US $100 million, at 1975 prices.

Finally, the planning of the orders of the Merchant Marine and the activities of the shipyards have created conditions for: utilization of economies of scale and largescale produciton, with subsequent cost reduction in the shipyards and in the equipment; the improvement of the quality of the ships constructed; the establishment of a climate of efficiency and competitiveness, which facilitates and benefits the export of ships; the rationalization of the relations of SUNAMAN with the shipowners and the shipyards, as well as the upgrading of the procedures for examination and approval of orders, import

of components and financing of the various phases of shipbuilding. Recent History

Although the naval construction sector has only taken off in the last few years, Brazil always has had a great vocation for the activity, due to some very important geographic and historic factors.

Brazil's coastline extends, uninterrupted, for more than 7,400 kilometers and the navigable part of its river networks accounts for 44 thousand kilometers. Up to the end of the last century, transport along the maritime coast and the rivers was practically the only link between the diverse population nuclei of the country, which in Brazil were separated by sparsely settled areas.

In the past few years, the Brazilian naval industry has come of age. Among the 38

shipyards of the country, there are found the largest in South America. They are dedicated to the construction of all types of vessels, from simple barges to highly sophisticated oil/mineral tankers and to the repair of all kinds of ships. Some of the shipyards have capability to build ships of up to 400 thousand dead weight tons.

The first shipyards in Brazil founded in the last century. But it was only a little more than 20 years ago that the policy of industrial development launched by the government provided the conditions necessary for the expansion of the existent shipyards and the installation of new ones.

At the end of the sixties, Brazilian naval construction attained high growth rates and a short time later the national shipyards were able to entirely attend to the domestic demand and to begin entry into the international market.

Ishikawajima do Brasil Estaleiros S.A.-"ISHIBRAS"

Established -- 1959
Location - inhauma – State of
Guanabara A joint venture with the Japanese cor- poration Ishikawajima Harima Heavy Industries, it builds a wide range of vessels, from 12,000 dwt carriers to large 276.000 dwt OB O vessels. In its facilties are now being built five 131,000 dwt OBO vessels ordered by Petrobras and Vale do Rio Doce Co. and two 270.000 dwt tankers for Petrobras. Ishibras also makes Sulzer and Daihatsu types engines.

In addition to a recently opened dry dock whose capacity is 400,000 dwt, further improvements include the construction of a heavy equipment plant with a floor space of 1,650.000 square

feet. Verolme Estaleiros Unidos do Brasil S.A.

Est: 1958
Loc: Jacuacanga Bay, Angra dos Reis,
State of Rio de Janeiro. In this shipyard was built the 53,000 dwt DOCEANGRA, the largest vessel ever made in Latin America; as well as a 12.000 dwt liner bought by a Portuguese shipping organization.

In its facilities, comprised of two shipways for large-sized vessels of 40,000 to 150,000 dwt are now being built three 116,00 dwt tankers ordered by

Petrobras. Companhia Comercio e Navegacao

Est: 1905
Loc: Ponta d'Areia, Niteroi, State of Rio
de Janeiro.

Est: 1944 Loc: Praia Rosa, Ilha do Governador, State of Guanabara. Ever since its creation EMAQ's main activity has been the building of tugboats, dredges and trawlers. However, in order to increase its building capacity up to 40,000 dwt, the shipyard facilities are being expanded. Two 3,040 dwt cargo carriers have already been built and exported to Mexico.

ESTANAVE-Estaleiros e Navegacao da Amazonia S.A.

Est.: 1968
Loc: Manaus, State of Amazonas. The newest Brazilian shipyard has, in only four years, built more than 80 vessels, among them oil barges, salt carriers, tugboats and a helicopter car- rier. It has two large size dry docks for building up to 26,000 dwt vessels and a smaller for 1.000 dwt ones, and special- izes in river boats.

Industrias Reunidas Caneco S.A.

Est.: 1886 Loc: Ponta do Caju, State of Guanabara During the past twelve years this shipyard has been steadily expanded and modernized. Its present building capacity is 40.000 dwt, and more than fifty orders for different types of ships and boats have already been filled. Caneco is a time-honored supplier of trawlers for both the domestic and Portuguese West African fishing indus- tries.

In additon to the above mentioned shinvards there are others in Brazil, which,

INCONAV-Industria e Comercio Naval S.A.

Loc.: Niteroi, State of Rio de Janeiro. Specializes in small ships, and by license of Rockport Yacht and Supply. Co. (Texas, U.S.A.) builds fishing boats from 60 to 150 feet long. of which eight are being exported to Mozambique.